DIGEST 

OF 


Savings Bank 1 


aws 


JOSEPH H. PRAETZ 



Class _ti_ 

JLlEj . 


Copyright ]f ^ 




COPYRIGHT DEPOSIT. 


V 


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DIGEST 

of 


Savings Bank Laws 


CONTAINING 


The New Banking Law, the Penal 
Law, the Tax Law, and other Laws 
applicable to the Savings Banks 
of the State of New York .... 


v 

By Joseph H. Praetz, LL. B. 

Assistant Auditor of the Emigrant Industrial Savings Bank 


PUBLISHED BY THE AUTHOR 
51 CHAMBERS STREET 
NEW YORK 
1914 




'O 










H G- 

•K 7 P T 


Copyright, 1914 
by 

Joseph H. Praetz. 


OCT -9 1914 


©Cl. A 387131 


/to 


Y<- 


TO ALL 


WHO ARE IN THE SERVICE OF THE 
EMIGRANT INDUSTRIAL SAVINGS BANK. 


t 


CONTENTS. 


Explanatory .vii 

I. Sources of Authority and Supervision . . i 

II. General Powers and Dissolution . . . . io 

III. Cash on Hand and on Deposit.16 

IV. Investments.18 

V. Deposits and Withdrawals.26 

VI. Dormant Accounts.31 

VII. Bookkeeping and Reports.33 

VIII. Guaranty Fund and Undivided Profits . . 36 

IX. Dividends.41 

X. Expense Fund.44 

XI. Board of Trustees.49 

XII. New Savings Banks and Mergers .... 59 

XIII. Penal Law : Definitions and General Pro¬ 

visions .65 

XIV. Penal Law : Provisions Governing Savings 

Banks. 74 

Index of the Laws Digested by Sections, 80 to 94 


v 















EXPLANATORY. 


T HIS HANDBOOK is intended as an Aid to the Law 
for any officer, trustee, clerk, employee or depositor 
of a Savings Bank of the State of New York. 

It presents in easily usable form the Laws applicable to 
Savings Banks. 

It contains a digest of the New Banking Law, the Penal 
Law, the Tax Law and the Provisions of the Constitution 
of the State of New York, under which the Trustees of 
Savings Banks manage the Institutions over which they 
preside. 

Each part of the law quoted and digested is followed 
by a reference to the section of the original law. 

The numbers in parenthesis refer to sections of the 
Banking Law of the State of New York, except as other¬ 
wise noted, e. g., 

“(260)” means Section 260 of Chapter 2 of the Consolidated 
Laws of the State of New York (The Banking Law). 

“(239-70)” refers to Section 239, subdivision 7, paragraph 
o of the same. 

Wherever the word “Superintendent” occurs in the follow¬ 
ing pages, the Superintendent of Banks of the State of New 
York is indicated. 

Wherever the word “Bank” occurs in the following pages a 
Savings Bank of the State of New York is indicated. 

The New Banking Law is divided into twelve Chap¬ 
ters, with two Chapters on Penal Law added. The arrange¬ 
ment of the topics being for existent Savings Banks, the 
provisions governing the organization of New Savings 
Banks are contained in the twelfth Chapter. 

vii 


If the reader is interested in a topic, the main provisions 
on the desired subject will be found in one chapter, contain¬ 
ing a complete subject, without cross reference. If it hap¬ 
pens to be one not used as a title, the chapter akin to the 
subject matter desired may be readily located, and the sub¬ 
title found at the beginning of the chapter immediately under 
the heading, thus facilitating the study of the Banking Law. 

In fine, the work is not a reprint of the laws, nor is it 
an annotated law book, but it is made up of the laws, freely 
digested, and arranged into convenient chapters with titles 
easily to be remembered. 

The Index to the Laws Digested, by Sections, serves to 
locate all other laws which relate to the same subject-matter. 

It has been the author’s aim to make the “Digest 
of Savings Bank Laws” both clear and complete, and it 
has been written with the earnest purpose of having all the 
laws governing Savings Banks widely read. May it find a 
place on the desk of every savings bank man as a handy 
book of reference. 


J. H. P. 


viii 


CHAPTER I. 


SOURCES OF AUTHORITY AND SUPER¬ 
VISION. 


DEFINITION OF A SAVINGS BANK.—CHARTERS TO CONFORM TO 

BANKING LAW.-USE OF WORD "SAVINGS” PROHIBITED TO 

OTHERS.—PUBLIC SCHOOL SAVINGS BANKS.—DERIVATION 
OF AUTHORITY.-CONSTITUTIONAL LIMITATIONS.-EN¬ 
ACTMENT OF BANKING LAW.-BANKING DEPART¬ 
MENT.-SUPERINTENDENT OF BANKS.-DEPART¬ 
MENTAL DUTIES.-SUPERINTENDENT'S BUL¬ 
LETIN BOARD AND ANNUAL REPORT.-BOARD 

OF TRUSTEES.—BY-LAWS. 


Definition of a Savings Bank. 

A Savings Bank, means a corporation authorized by 
the laws of New York State only 

(a) To receive money on deposit in such sums; 

(b) To invest the same in such securities and property; 

and 

(c) To declare, credit and pay from its earnings such 

dividends, as may be prescribed by law. (2.) 

Charters to Conform to Banking Law. 

Every Savings Bank of the State of New York shall be 
subject to the duties, restrictions and liabilities contained in 
the Banking Law, with its powers, privileges and duties 
abridged, enlarged or modified to conform thereto, notwith¬ 
standing anything to the contrary in its charter or act of 
incorporation. 

(Article VIII, Section 4, Constitution New York and 
281.) 

Nothing, however, in the Banking Law contained, shall 
be construed as impairing contracts heretofore made between 
savings banks and their depositors as to notice of withdrawal 
of deposits. (248-1.) 


1 



Digest of Savings Bank Laws 


Use of Word Savings Prohibited to Others. 

No individual or corporation other than a Savings Bank 
and a Savings and Loan Association shall make use of the 
word “saving” or “savings,” or its equivalent, in banking 
business. (279-1.) 

Or solicit or receive deposits as a savings bank. (279-1.) 

$100 fine for every day such offence is committed. 
(279-1.) 

Public School Savings Banks. 

Public Schools may use words “System of School 
Savings Bank” or “School Savings Banks” and may collect 
small amounts of savings from pupils and deposit the same 
on the day of collection, when sufficient, in a savings bank to 
the credit of pupils from whom money was collected; if in¬ 
sufficient, to the credit of superintendent or principal of 
school. (279-2.) 


2 


DERIVATION OF AUTHORITY 


BY A SAVINGS BANK UNDER THE NEW BANKING LAW AND 
OTHERWISE. 

The People of the State of New York (sovereign power). 

I 

Constitution of the State of New York (Adopted by the 
People and in force January ist, 1895.—Article VIII, 
Section 4). 

I 

Legislature of the State of New York (Constitution 
New York, Article III, Section 1). 

1 

Banking Law of the State of New York (as interpreted 
by Court decisions and rulings of the Attorney-Gen¬ 
eral). (Chapter II of the Consolidated Laws of New 
York, in particular Section 1.) 

1 

Banking Department (Section 10). 

1 

Superintendent of Banks (Section 10). 

1 

Board of Trustees of a Savings Bank (Section 260, Sub¬ 
division 1). 

By-Laws Adopted by Board of Trustees (Section 262). 


Executive 
Committee 
of Trustees. 
(264-3 and 239-6.) 


President, 
Two Vice- 
Presidents, 
and such officers 
as Trustees elect 
from their own 
number or other¬ 
wise. (263.) 


Semi-Annual 
Examination 
Committee 
of Trustees. 

(272.) 


3 




Digest of Savings Bank Laws 


Constitutional Limitations on Legislature. 

The Legislature shall by general law conform all char¬ 
ters of savings banks to a uniformity of powers, rights and 
liabilities. (Constitution New York, Article VIII, Section 4.) 

All charters hereafter granted to conform to such gen¬ 
eral law and amendments thereto. (Article VIII, Section 
4, ditto.) 

There shall be no capital stock in a savings bank. (Art¬ 
icle VIII, Section 4, ditto.) 

A Trustee of a Savings Bank is restricted as follows: 

(a) He shall not have any interest whatever, direct or 

indirect, in the profits; and 

(b) He shall not be interested in any loan; and 

(c) He shall not use any money or property of the 

savings bank of which he is a Trustee. (Article 
VIII, Section 4, ditto.) 

Enactment of Banking Law. 

The People of the State of New York, represented in 
Senate and Assembly, enacted Chapter 2 of the Consolidated 
Laws of the State of New York, 

(a) To be known as the banking law (i). 

(b) To be applicable to all Savings Banks of the State 

of New York (1). 

(c) To take effect immediately. (502.) 

(Governor Martin H. Glynn signed the Bill, being 
Chapter 369 of the Laws of 1914, on April 16, 1914.) 

This Banking Law shall be construed as a continuation 
of Chapter 10, Laws of 1909, as hereby amended and not as 
a new enactment. (501.) 

All previous laws applicable to savings banks repealed. 
(Soo.) 

Banking Department. 

The Banking Department is charged with the execution 
of the laws relating to savings banks. (10.) 


4 


Sources of Authority and Supervision 

Superintendent of Banks. 

The Superintendent of Banks is the chief officer of the 
Banking Department and has supervision of every Savings 
Bank and is empowered to perform such duties as are con¬ 
ferred upon him by the Banking Law and other laws of this 
state. (10.) 

Appointed by the Governor, with advice and consent of 
Senate, his term of office is three years and salary $10,000 
per annum, under $50,000 fidelity bond. (10.) 

Oath of office to be taken and filed with Secretary of 
State 15 days after appointment. (10.) 

The Superintendent shall keep and furnish offices for his 
department, as assigned to him at the State Capital. (12.) 

The Secretary of State shall provide official seal for 
Superintendent, entitling documents so sealed to be re¬ 
corded. (11.) 

Superintendent may appoint four Deputy-Superintend¬ 
ents and such clerks, examiners, etc., as needed. (13.) 

If Superintendent is absent or unable to act for thirty 
successive days, either 1st, 2d, 3d or 4th deputy in order, 
shall act after filing $50,000 fidelity bond. (14.) 

Deputies, clerks and examiners may be pensioned after 
twenty years’ service and receive 50% of average annual 
salary for two years immediately preceding retirement. (16.) 

The Superintendent shall not be interested in any bank 
under his supervision. (10.) 

An Examiner shall neither obtain a loan from a bank, 
etc., subject to New York Banking Law—nor a gift, nor a 
credit—under penalty of removal. (15.) 

Departmental Duties. 

General Expenses of Department shall be assessed pro 
rata on all banks under the supervision of the Superin¬ 
tendent. (17.) 

Expenses for services performed for one bank shall be 
charged against the bank benefited. (17.) 

All expenses incurred by Banking Department shall be 
paid out of the state treasury, on the certificate of the Super¬ 
intendent and the warrant of the state comptroller. (17.) 


5 


Digest of Savings Bank Laws 

Superintendent shall pay the state treasurer all moneys 
received by him, monthly, to reimburse the state. (19.) 

Fees for copies of papers filed with the Superintendent, 
ioc. per folio—affixing seal and certifying, $1.00. (18.) 

If any person or corporation refuses or fails to pay any 
penalty imposed or violates any prohibitions contained in 
the Banking Law, the Superintendent may report to the 
Attorney General, who shall institute proceedings warranted 
by the facts. (31 and 59.) 

Examinations shall be made of every Savings Bank at 
least once in each year. (39.) 

And such other examinations, at any time, whenever 
the Superintendent judges it necessary or expedient. (39.) 

The result of examination shall be certified on the re¬ 
cords of the bank. (40.) 

Acting as Trustee for depositors or creditors of Savings 
Banks, the Superintendent may enforce agreements entered 
into in such capacity and has power to sue. (44 and 71.) 

Approval of the Superintendent —if necessary as condi¬ 
tion precedent—is discretionary with him to grant or refuse. 
Written copy thereof to be filed in his office. (48.) 

Extensions of time may be granted by the Superin¬ 
tendent, viz.: 

(a) One year to commence business of a new savings 

bank. (49-1.) 

(b) Twenty days on any report to be filed by a savings 

bank. (49-2.) 

(c) Such period as he may deem proper to dispose of 

real estate to comply with law. (49-3.) 

LIST OF LEGAL INVESTMENTS—ESTIMATED MARKET VALUE. 

Superintendent on January 1st each year shall mail to 
each Savings Bank a list of stocks and bonds which are legal 
investments under Section 239. (52.) 

To prepare such list he may employ expert assistants 
and apportion expense among savings banks. (52.) 

He may rely on authoritative publications for his infor¬ 
mation. (52.) 


6 


Sources of Authority and Supervision 

He is not liable for any omission from the list or any 
included erroneously. (52.) 

Estimated Market Value of all bonds shall be furnished 
by the Superintendent on or before June 1st and December 
1st each year, either specifically or by classes, with such 
detail as he may deem necessary, being governed by actual 
sales during preceding five months and general business con¬ 
ditions. (53.) 

Orders, Bulletins and Reports. 

Superintendent may order Savings Bank to discontinue 
unlawful or unsafe practices—require the delinquent to ap¬ 
pear before him and present any explanation in defense of 
all practices ordered discontinued. (56-1.) 

He may order books and accounts accurately and con¬ 
veniently kept. (56-4.) 

Preference. —In liquidating Savings Banks, moneys col¬ 
lected shall be deposited in state banks, savings banks or 
trust companies, and such deposits are entitled to prefer¬ 
ence in case of insolvency. (70.) 

Superintendent's Bulletin Board shall be kept in his of¬ 
fice, and items of general interest relating to banks and bank¬ 
ers and corporations under his supervision and savings banks 
shall be posted thereon at noon on Friday of each week. (82.) 

The names and addresses and other necessary informa¬ 
tion shall be posted about each savings bank which 

(a) Has filed certificate for examination. (82-1.) 

(b) Has been authorized to commence business. (82-2.) 

(c) Has had certificate of authorization refused. (82-3.) 

(d) Has been authorized to change its place of busi¬ 

ness. (82-8.) 

(e) Has merged. (82-12.) 

(f) Has had its affairs taken possession of by Super¬ 

intendent. (82-15.) 

(g) Has been authorized to resume business. (82-16.) 

(h) Has had its creditors and depositors paid in full. 

(82-17.) 

(i) Has been finally liquidated and dissolved or dis¬ 

continued. (82-18 and 82-19.) 


7 


Digest of Savings Bank Laws 

(j) Has applied for approval of a change of name (82- 

20), and 

(k) Post all names and addresses, salaries and office to 

which appointed of every new appointment of 

Superintendent for the banking department. (82- 

I 3 -) 

Every item shall be posted one week, shall be placed on 
file and at reasonable times be open to public inspection. 
(82-20.) 

Annual Report of Superintendent shall contain: 

(a) A summary of the state and condition of every 

savings bank as per its report for preceding one 

year. (83-1.) 

(b) A list of all savings banks approved and commenc¬ 

ing business. (83-2.) 

(c) Statement of closed savings banks and amount of 

unclaimed deposits on each. (83-3.) 

(d) Statement of amounts earned on unclaimed de¬ 

posits. (83-4.) 

(e) Recommendations of desirable amendments to The 

Banking Law. (83-5.) 

(f) Payroll and expenses of department and amounts 

due to department. (83-6.) 

Report shall be printed on or before last day of year; 
usual number of copies for legislature, 1,000 copies for de¬ 
partment, expense charged to general expenses of depart¬ 
ment. (83-6.) 

Board of Trustees. 

A Board of Trustees shall have the entire management 
and control of the savings bank. (260-1.) 

A Trustee is presumed to have such knowledge of the 
affairs of savings bank as to enable him to determine whether 
act or proceeding violates the penal laws governing banks 
and corporations. (Penal 667.) 

If present, dissent shall be recorded on minutes. (Penal 

667.) 


8 


Sources of Authority and Supervision 


If absent, dissent shall be recorded within six months, 
otherwise in both cases he shall be deemed to have concur¬ 
red therein. (Penal 667.) 

By-Laws. 

By-Laws, Rules and Regulations, not inconsistent with 
law, may be made by the Board of Trustees, generally, for 
transacting, managing and directing affairs of savings bank. 
(262.) 

A copy of By-Laws and all amendments shall be sent to 
Superintendent. (262.) 


9 


Digest of Savings Bank Laws 


CHAPTER II. 

GENERAL POWERS AND DISSOLUTION. 


NO CAPITAL STOCK.—POWERS CONFERRED.—RESTRICTIONS. 
—MERGERS AND CHANGE OF LOCATION OR NAME.— 
YEARLY EXAMINATION BY BANKING DEPART¬ 
MENT.—UNLAWFUL PRACTICES.—WHEN 
SUPERINTENDENT MAY TAKE POSSES¬ 
SION.—PROCEDURE IN LIQUIDA¬ 
TION.—VOLUNTARY DISSO¬ 
LUTION. 


No Capital Stock. 

There shall be no capital stock in a savings bank. (Art¬ 
icle VIII, Section 4, Constitution New York.) 

Powers Conferred. 

General Powers Conferred on every Savings Bank, are: 

(a) To receive deposits of money. (238-1.) 

(b) To invest the moneys deposited in property pre¬ 

scribed in Section 239. 

(c) To declare dividends as prescribed in Section 254 

and 256, and 

(d) To exercise incidental powers by its board of trus¬ 

tees necessary to carry on the business of a sav¬ 
ings bank. (238-1.) 

(e) To issue transferable certificates of amounts due 

incorporators. (238-2.) 

(f) To purchase, hold or convey real estate as pre¬ 

scribed in Sections 239 and 240. (238-3.) 

(g) To pay depositors by drafts or in foreign exchange 

at current rates. (238-4.) 

(h) To borrow money in an emergency and hypothe¬ 

cate securities as collateral for loans so obtained. 
(238-5.) BUT FOR this, the written approval of 
the Superintendent of Banks is necessary—is- 

10 



General Powers and Dissolution 

sued after a resolution is adopted by majority of 
board of trustees, duly entered upon minutes, 
recording “Ayes” and “Noes.” (243-1.) 

(i) To collect and protest promissory notes and charge 

usual fees therefor. (238-6.) 

(j) To sell gold and silver received in payment of in¬ 

terest or on deposit. (238-7.) 

(k) To do all other acts authorized by Article VI, Bank¬ 

ing Law. (238-8.) 

Restrictions on General Powers. —A Savings Bank 

(a) Shall not purchase, deal or trade, in any goods, 

wares, merchandise, except as necessary to trans¬ 
act authorized business. (242-1.) 

(b) Shall not nor shall any officer thereof in regular 

attendance upon the business of the savings bank 
in any manner buy or sell exchange, gold or 
silver, except to sell gold or silver received in 
payment of interest or on deposit. (238-7 and 
242-2.) 

(c) Shall not do business in same room with any bank, 

trust company or national banking association. 

(245-1-) 

(d) Shall not transact its usual business, other than at 

its principal place of business, except merged 
banks, if agreement provides for separate offices. 

(245-2-) 

Mergers and Change of Location or Name. 

Any two savings banks located in same city of first 
class, in same county or borough or any two or more loca¬ 
ted elsewhere in same or adjoining counties may merge. 
(487-2.) 

Change of Location may be made upon written approval 
of the Superintendent. (50 and 82-8.) 

If proposed place of business is not within the same 
town, village, borough or city as old location, notice of 
change to be published in newspapers. (259.) 


11 


Digest of Savings Bank Laws 

Change of name may be effected by applying to Su¬ 
preme Court, giving grounds therefor and having Superin¬ 
tendent’s authorization for the change. (Section 61, 62 and 
63, General Corporation Law and 82-20.) 

Yearly Examination by Banking Department. 

At the Yearly Examination by Banking Department 
inquiry shall be made as to whether mode of conducting and 
managing affairs is safe and prudent and whether require¬ 
ments of law have been complied with in the administration 
of its affairs. (39.) 

Superintendent may order unlawful and unsafe 
practices discontinued, allowing bank to explain acts. 

(56-1.) 

Superintendent may take Possession if Savings Bank 

(a) Has violated its charter or any law. (57-1 and 

82-15.) 

(b) Conducts business in unauthorized or unsafe man¬ 

ner. (57-2.) 

(c) Is unsound or unsafe. (57-3.) 

(d) Cannot with safety and expediency continue. (57- 

4 .) 

(e) Has suspended payments. (57-6.) 

(f) Has not complied with terms of duly issued order 

of Superintendent. (57-7.) 

(g) Refused to submit records and affairs for inspec¬ 

tion. (57-8.) 

(h) Refused to be examined upon oath regarding its 

affairs. (57-9.) 

Termination of Possession. 

Upon satisfactory conditions the Superintendent may 
permit a resumption of business. (58-1 and 61 and 82-16.) 

His possession terminates when depositors and credit¬ 
ors are paid in full. (58-4 and 82-17.) 

To Test Action of Superintendent, Savings Bank may 
procure order to show cause within ten days after taking 


12 


General Powers and Dissolution 

such possession, and upon good cause shown, court may 
direct Superintendent to surrender possession. (58-2 and 
60.) 

Superintendent to report delinquencies to attorney gen¬ 
eral to procure judgment of dissolution. Reports when 
duly verified shall be presumptive evidence. (59.) 

Expenses of liquidation shall be paid out of the funds 
in hands of the Superintendent. (63.) 

Procedure in Liquidation. 

Special deputies to liquidate. The Superintendent may, 
by certificate, under his hand and seal, appoint one or more 
Special Deputy-Superintendents as his agents to liquidate 
any or all of the affairs of a savings bank in his possession 
as he may deem proper. (62 and 69.) 

A certified copy of certificate to be filed in County 
Clerk’s office where savings bank is located. (62.) 

Superintendent may employ expert assistants, counsel 
or clerks as he may deem necessary, requiring security as 
he may deem proper. (62.) 

The Superintendent may obtain possession of all plead¬ 
ings, etc., in actions, against which attorney’s liens are as¬ 
serted, by applying to court and giving notice to attorney. 
The court may determine amount of lien and may direct 
attorney to deliver to Superintendent all the property of the 
savings bank. (64.) 

On taking possession the Superintendent shall notify 
those holding assets. (65.) ) 

Inventory of Assets to be made by the Superintendent 
in duplicate, the one for his office and the other to be filed 
with the County Clerk of county in which savings bank is 
located. (66.) 

The Superintendent has power to sue in the name of de¬ 
linquent bank. (71.) 

Such action is entitled to preference on the calendar. 

(7 1 -) 

The Superintendent may execute all necessary papers 
for delinquent bank. (71.) 


13 


Digest of Savings Bank Laws 


The Superintendent is exempt from paying filing fees. 

(7i-) 

Superintendent while in possession of savings bank 
may, within 6 years after cause of action has accrued, main¬ 
tain in his name as Superintendent against the trustees or 
officers, any action which is vested in such savings bank or 
its creditors. (81.) 

Notice to creditors to make proof of claims shall be 
mailed and published weekly for three months and claims 
to be presented within four months from date of notice. 
(72.) 

Claims duly presented shall be listed. (73 and 75.) 

One list filed in Superintendent’s office and the other 
in County Clerk’s office. (73.) 

Within thirty days, objections to claims may be filed. 

(74-) 

The Superintendent may accept or reject claims, but 
shall notify claimant when he rejects a duly filed claim. (75.) 

Claims filed shall be listed—accepted and rejected both— 
and one copy of each filed in his office and the others in 
County Clerk’s office. (75.) 

The effect of accepting claim is that claimant shares 
ratably in assets. (76.) 

Action on rejected claim shall be commenced within six 
months. (76.) 

No action may be commenced before 60 days have 
elapsed since expiration of time for filing claim, and none 
after six months have elapsed. (76.) 

The Entry of Judgment recovered after Superintendent 
takes possession shall not attach as a lien to any property as 
long as he is in possession. (77.) 

At any time after date fixed for presentation of claims, 
Supreme Court may by order authorize the Superintendent 
to declare, out of the funds in his hands, one or more divi¬ 
dends. (78.) 

At any time after eight months he may declare a final 
dividend by a like order. (78.) 

Dividend unclaimed for six months shall be deposited 
by the Superintendent in a state bank, trust company, or 


14 


General Powers and Dissolution 

savings bank, and shall be entitled to priority, in case of the 
insolvency of depositary. (45 and 78.) 

Voluntary Dissolution. 

The board of trustees of any solvent savings bank may 
direct that such corporation be closed for the purpose of 
winding up its affairs. (486.) 

Twenty days’ written notice shall be served upon each 
trustee. 

Proof by affidavit of due service shall be filed at the 
savings bank before or at the time of such meeting. (486-1.) 

Affirmative vote of two-thirds of whole number is 
necessary. (486-2.) 

“Ayes” and “Nays’’ to be recorded on each vote. (486-2.) 

Proceedings to be entered upon minutes. (486-2.) 

A copy of the minutes of the proceedings, verified by 
president and secretary, shall be filed in the office of the 
Superintendent within two days after the meeting. (486-2.) 

Within three months after such meeting application to 
Supreme Court may be made, after due notice to the Super¬ 
intendent, for an order declaring business of savings bank 
closed. (486-3.) 

Within five days certified copy of order shall be filed 
with the Superintendent. (486-3.) 

Before applying for a release upon final accounting or 
final order of dissolution, savings bank 

(a) Shall have given notice prescribed in order to 

creditors and depositors to present their claims. 

(b) Shall have paid all presenting claims. 

(c) Shall have made verified transcript of all unclaimed 

deposits or debts. 

(d) Shall have filed such transcript with all identifying 

information with the Superintendent, and 

(e) Shall have paid over all such unclaimed moneys to 

Superintendent as trustee for depositors. (486-4.) 

After all preceding requirements are complied with, 
court may declare such savings bank dissolved. (486-5.) 

When certified copy of order of Dissolution is filed with 
the Superintendent of Banks, the savings bank ceases to 
exist. (486-6.) 


15 


Digest of Savings Bank Laws 


CHAPTER III. 

CASH ON HAND AND ON DEPOSIT. 


CASH ON HAND.—IN BANK.—RESTRICTIONS.—PREFERENCES. 
-MAXIMUM AMOUNTS INVESTED. 

Twenty per cent, of amount due depositors may be kept 
on hand and on deposit in any Bank or Trust Company or 
National Bank in this state. (251.) 

Majority vote of trustees, exclusive of trustee who is 
also director, etc., of bank selected, shall designate deposit¬ 
aries. (244.) 

Restrictions and Preferences. 

An amount equal to 25% of depositary bank’s capital 
and undivided profits may be deposited in any one bank, but 
only 5% of amount due depositors in depositary of which 
one of its trustees is a director. (251.) 

Up to the amount authorized and deposited, savings 
banks shall be preferred creditors in the liquidation of in¬ 
solvent banks or trust companies of the State of New York. 
Preference does not extend to deposits in national banks. 
(278.) 

Deposits in bank shall not be deemed a loan to a cor¬ 
poration forbidden, and for which trustees forfeit their 
office if they are also directors of depositary bank. (267-2?.) 

Maximum Amounts Invested Not to Exceed 
the Following: 

Cash on hand and in 

depositaries .... 20% of amount due depositors. 

(251.) 

Cash in any one de¬ 
positary . 25% of depositary’s capital and 

undivided profits (251), 
except 


16 




Cash on Hand and on Deposit 


Cash in any one de¬ 
positary . 

5% 

Total Loans on Bond 
and Mortgage . . . 

65% 

Each Loan on Im¬ 
proved Real Estate 

60% 

Each Loan on unim¬ 
proved and unpro¬ 
ductive Real Estate 

40% 

Total stocks, bonds, 
etc., of United 
States, States, 
Municipals .... 

100% 

Banking house and 
office building . . . 

25 % 

Loans on Demand 
promissory notes . 

90% 


Total Railroad 

Bonds. 25% 

Total in any one 
New York State 
Railroad. 10% 

Total in any other 

Railroad. 5% 


of amount due depositors if 
trustee of savings bank is 
also director of depositary 
bank. (251.) 

of amount due depositors and 
guaranty fund. (239-6.) 

of value of each parcel of 
land and improvements, 
mortgaged. (239-6.) 

of value of land. (239-6.) 


of total assets—no limit. 
(239-1 to 5.) 

of Guaranty Fund, but more 
with Superintendent’s per¬ 
mission. (240.) 

of market value of such 
hypothecated stocks and 
bonds as a savings bank 
may buy. (239-8.) 

of Assets. (239-7*’.) 


of Assets. (239-7*.) 


of Assets. (239-7*.) 


17 






Digest of Savings Bank Laws 


CHAPTER IV. 

INVESTMENTS. 

INVESTMENTS OF DEPOSITS AND GUARANTY FUND.—REQUI¬ 
SITES.—RESTRICTIONS.—9. CLASSES OF INVESTMENTS.— 

I TO 5. MUNICIPAL BONDS.—6. REAL ESTATE MORT¬ 
GAGES.—7. RAILROAD MORTGAGE BONDS.— 

8. DEMAND PROMISSORY NOTES.—9. BANK¬ 
ING HOUSE AND OTHER REAL ESTATE.- 

STATEMENT OF INVESTMENTS. 

A Savings Bank 

(a) Shall invest as soon as practicable all moneys de¬ 

posited (251) ; except 

(b) It may retain 20% of its deposits in cash and on 

deposit in order to pay withdrawals and ex¬ 
penses therewith (251) ; 

(c) And it may invest deposits and guaranty fund and 

income therefrom in the following nine classes of 
property and securities and no others. (239.) 

Federal, State and Municipal Bonds. 

First Class. —Bonds, etc., of the United States or District of 
Columbia. (239-1.) 

Second Class. —Bonds, etc., of New York State. (239-2.) 
Third Class. —Bonds, etc., of other states for which credit 
of state is pledged and not in default, and upon which 
there has been no default for more than ninety days 
during preceding ten years on debt, authorized since 
January 1st, 1878. (239-3.) 

Fourth Class. —Stocks, bonds, interest-bearing obligations, or 
revenue notes sold at a discount, of any city, county, 
town, village, school district, union free school district 
or poor district in New York State —when duly issued 
and for which credit of district is pledged. (239-4.) 
Fifth Class. —Stocks or bonds of cities in other states: 
Admitted to statehood prior to January 1st, 1896, and 
State has not defaulted since January 1st, 1861, and 
City has population of 45,000 as shown by federal cen¬ 
sus, 


18 



Investments 


And is incorporated as city at least 25 years, and 
City has not defaulted for more than ninety days since 
January 1st, 1878, and 

City together with municipal corporation (except 
county) in whole or in part included in its limits has 
not a debt exceeding 7% of valuation (water debt 
and sinking fund excluded). (239-5.) 

A savings bank may invest any or all of its assets in 
classes 1 to 5. (239.) 

Real Estate Mortgages—Requisites—Restrictions. 

Sixth Class.—Bonds and mortgages on unencumbered real 
property in New York State. (239-6.) 

65% of deposits and guaranty fund may be so loaned. 
(239-6.) 

Each mortgage not to exceed 60% of appraised value of 
improved property, or 

40% of unimproved and unproductive land. (239-6.) 
No such loans to be made except committee of trustees 
certify in writing as to the value of premises mortgaged; re¬ 
port to be preserved among records of savings bank. (239-6.) 

A Trustee shall not be interested in any loan. (Constitu¬ 
tion New York, Article VIII, Section 4.) 

Every borrower is required to furnish bond, secured by 
mortgage of real estate upon which loan is made, together 
with Abstract of Title or Policy of Title Insurance. (241-1.) 

Attorney for the bank may collect usual fees for such 
services, but no commission. (265-3.) 

Mortgagor required to carry fire insurance, payable to 
bank as its interest may appear, in such companies as the 
bank shall direct. In case of neglect, bank may order insur¬ 
ance, and charges become lien on property and are recover¬ 
able with interest. (241-2.) 

Officers of bank shall not divert insurance to any broker 
or refuse policies because procured by other brokers. (267- 

2C.) 

Every mortgage shall immediately be duly recorded. 

(241-3.) 


19 


Digest of Savings Bank Laws 


Assignment of Mortgage held by Savings Bank (or any 
other person or corporation) shall be made in lieu of giving 
a Satisfaction Piece, provided: 

(a) Mortgage is due and payable. 

(b) Demand for assignment thereof has been made of 

the mortgagee or holder of the mortgage by the 
owner of the premises mortgaged. 

(c) Full amount of principal and interest due on the 

mortgage is paid or is tendered. 

(d) Usual fee for drawing assignment is tendered. 

The Assignment shall be duly executed and 

(a) May by its terms be without recourse to the as¬ 

signor in any event, and 

(b) May discharge such assignor from any liability 

thereunder to the assignee. (Real Property Law, 
Section 275, being Chapter 408, Laws of 1914, in 
effect October 1st, 1914.) 

Mortgage Recording Tax. —A tax of 50c. for each $100 
and each remaining major fraction of principal debt is im¬ 
posed on each mortgage of real property, securing said prin¬ 
cipal debt after July 1st, 1906. (Tax Law 253.) 

To be collected and paid to the recording officer of 
county in which real property is situated, at the time the 
mortgage is recorded. (Tax Law 257.) 

Effect of Non-Payment of Tax. —Mortgage shall not be 
entitled— 

(a) to be recorded, 

(b) to be discharged of record, 

(c) to be extended on record, 

(d) to be assigned on record, 

(e) to be foreclosed or enforced, in any action or pro¬ 

ceeding, unless Mortgage Recording Tax shall 
have been paid. (Tax Law 258.) 

Railroad Mortgage Bonds. 

Seventh Class.—First Mortgage Bonds of Railroad Corpora¬ 
tions as follows: 

(a) First Mortgage Bonds or Bonds refunding all 
prior debts of Railroad corporations of this 
state, principal part of which is located within 


20 


Investments 


the state; or part of system operated by and 
majority of whose stock is held by a Railroad 
corporation of this state; provided no default 
for 5 years, 

And paid 4% on capital stock for 5 years, 

And stock is Yi as much as total mortgage in¬ 
debtedness issued or to be issued. (239-70.) 

(b) First Mortgage Bonds on whole or part of prop¬ 

erty or bonds refunding all prior debts of fif¬ 
teen railroads, viz.: Chicago and north west¬ 
ern ; CHICAGO, BURLINGTON AND QUINCY; 
MICHIGAN CENTRAL; ILLINOIS CENTRAL; PENN¬ 
SYLVANIA ; DELAWARE AND HUDSON COMPANY; 
DELAWARE, LACKAWANNA AND WESTERN RAIL¬ 
ROAD; NEW YORK, NEW HAVEN AND HARTFORD; 
BOSTON AND MAINE; MAINE CENTRAL; CHICAGO 
AND ALTON ; MORRIS AND ESSEX ; CENTRAL 
RAILROAD OF NEW JERSEY ; UNITED NEW JERSEY 
RAILROAD AND CANAL COMPANY; 

And roads leased or operated or controlled by 
any one of them, 

And whose principal and interest is guaranteed 
by one of them. 

And provided earned and paid 4% per annum 
in cash on all stock for ten years, 

And stock Yz as much as par value of all its 
bonded indebtedness, 

And mortgage was dated, executed and recorded 
prior to January 1st, 1905. (239-7Z7.) 

(c) First Mortgage Bonds on whole or part of prop¬ 

erty or Bonds refunding all prior debts of two 
railroads, viz.: Chicago, Milwaukee and st. 
PAUL ("ST. PAUL") and CHICAGO, ROCK ISLAND 
AND PACIFIC ("ROCK ISLAND"), 

So long as they earn and pay 4% per annum on 
stock, 

And stock is Yz as much as par value of all its 
bonded indebtedness, 


21 


Digest of Savings Bank Laws 


And mortgage dated, executed and recorded 
prior to January ist, 1905. (239-72.) 

(d) FONDA, JOHNSTOWN AND GLOVERSVILLE. First 

Mortgage or Refunding all prior debts, pro¬ 
vided stock is Yz as much as par value of all 
its bonded indebtedness, 

And road is standard gauge 4 ft. 8^2 in. (239 -yd.) 
And in refunding bonds of buffalo creek rail¬ 
road company, provided mortgage is dated, 
executed and recorded prior to January ist, 
1905. (239 -7d.) 

(e) Railroad of any other state owning 500 miles 

standard gauge in United States and provided 
there was 

No default for 5 years, 

Paid 4% on stock for 5 years, 

Had yearly gross earnings including sales of 
coal, etc., for 5 years, equal to 5 times interest 
payable on entire indebtedness and rentals, 
And it is first mortgage or refunding mortgage 
on 75% of railway owned in fee, and 
Bonds issued or to be issued do not exceed three 
times amount of stock. 

Refunding bonds to mature at a later date than 
bonds refunded and to cover 25% more mile¬ 
age than refunded mortgage. (239-72.) 

(f) If Gross Earnings were $10,000,000 per annum 

for five years next preceding and Railroad ful¬ 
fills other requisites of paragraph (e), 500 
miles of road not essential. (239-7/.) 

(g) Underlying bonds of subsidiary lines of a road 

legal under (e) and (/) assumed or guaran¬ 
teed by it and to be refunded by a general 
mortgage covering all the real property. (239- 

79■) 

(h) In other roads described in (e) and (g) not legal 

(because not owning 500 miles of road), but 
guaranteed by roads authorized under (e) and 


22 


Investments 


(f) provided stock is Y as much as outstand¬ 
ing prior debts. (239-7/1.) 

(i) In first mortgage bonds of Railroads whose en¬ 
tire capital stock is owned by road qualified 
under (a), (e) or (f). 

Provided, guaranteed by endorsement by quali¬ 
fied road 

And issue is not more than $20,000 per mile of 
road, 

And stock is Y of all previously guaranteed bond 
issues (239-71.) 

Bonds legal under these provisions shall not become 
illegal through sale or transfer or consolidation of roads if 
new owner assumes payment and pays interest and dividends 
regularly equal to 4% upon capital stock outstanding at time 
of transfer. (239-7*’.) 

Street Railroad Corporations shall not be considered 
railroad corporations within meaning of 239-7. (239-7*.) 
25% of Assets may be invested in railroad bonds. (239-7*.) 
10% of Assets may be invested in one New York State rail¬ 
road. (239-7*.) 

5% of Assets may be invested in any other railroad. (239- 

7*0 

To determine assets estimate value of stocks at par for 
those selling above par and market for those under par. Real 
estate at not above cost. (257.) 

Securities in arrears for interest shall be appraised by 
Superintendent of Banks. (54.) 

Loans on Demand Promissory Notes. 

Eighth Class.—Demand Promissory notes secured by pledge 
and assignment of federal, state or municipal corpora¬ 
tion stocks or bonds as enumerated in 239—1, 2, 3, 4 
and 5, or 

Railroad Mortgages as enumerated in 239-7; 

Up to 90% of cash market value of securities deposited. 
Depreciation to be made up by borrower so that the 
90% at all times obtains. (239-8.) 


23 


Digest of Savings Bank Laws 


Real Estate. 

Ninth Class.—Real Estate as follows: 

(a) Plot for banking house or for bank and office 

building (239-Qa) and building thereon may be 
occupied by savings bank and as an office 
building. (240-1.) 

Not more than 25% of guaranty fund, except 
with approval of Superintendent of Banks, 
may be so invested. (240.) 

Plans to be submitted for such approval. (240.) 

(b) Real Estate conveyed to bank direct in satisfac¬ 

tion of debts. (239-92?.) 

(c) Real Estate purchased at foreclosure sales. (239- 

9 c.) 

Written appraisal of all real estate acquired by 
foreclosure or otherwise under (b) and (r), 
signed by three trustees shall be filed with bank. 
( 253-1 b.) 

All deeds to be to the bank direct and shall be 
recorded. (240.) 

Except banking house and lot, all real estate to 
be sold within five years, unless Superintendent 
extends time on application of Board of Trus¬ 
tees. (240.) 

Superintendent may extend time for such period 
as he may deem proper. (49-3.) 

Liability of Trustees for Investments—Statements. 

Any officer or trustee authorizing or making any in¬ 
vestment of the bank’s funds in unauthorized investments, 
is guilty of a misdemeanor. (Penal 296.) 

Trustees not to be held liable for investing in state, 
municipal or railroad bonds contained in the last list of legal 
investments issued by the Superintendent unless notified to 
the contrary by the Superintendent. (239-9C.) 

List to be mailed by Superintendent on or before Jan¬ 
uary 1st of each year and to contain all investments legal 
under Section 239. (52.) 


24 


Investments 


Superintendent may require sale of unauthorized in¬ 
vestments, in his discretion. (55.) 

Change of investment shall be made gradually by sale 
or redemption in such manner as to prevent loss or embar¬ 
rassment to savings bank or unnecessary loss or injury to 
borrowers on such unauthorized securities. (281.) 

Statement of all purchases and sales of securities and 
loans for more than $1,000 to be submitted by officer de¬ 
signated by trustees, either to each trustee or to an executive 
committee of five trustees; 

A copy of the statement, together with a list of trustees 
present at the meeting, verified under oath by officer charged 
with duty, shall be filed with bank records no later than one 
day after meeting and shall be presumptive evidence of 
matters stated therein. (264-3.) 

An officer of a Savings Bank, even though not a trustee, 
shall not 

(a) Use funds of the bank for himself or for another. 

( 267-20 .) 

(b) Make unauthorized payments. (267-20.) 

(c) Receive and retain any commissions, etc., on loans. 

(267-2Z?.) 

(d) Become endorser or surety for loan by bank. 

(267-2d.) 

(e) Borrow any funds of bank. (267-2^.) 

(f) Purchase real estate on which bank holds a mort¬ 

gage. (267-2^.) 

(g) Direct borrowers on Bond and Mortgage to a cer¬ 

tain insurance broker—or refuse policies, nego¬ 
tiated through other brokers. (26 7-2C.) 


25 


Digest of Savings Bank Laws 


CHAPTER V . 

DEPOSITS AND WITHDRAWALS. 

DEPOSITS.—PREFERENCES.—RESTRICTIONS: $3,000 LIMIT.— 
WITHDRAWALS.—SIXTY-DAYS* NOTICE.—DEATH CASES.— 

TAXABLE TRANSFERS.—PASSBOOKS.—MINORS AS DE¬ 
POSITORS.—TRUST ACCOUNTS.—JOINT DEPOSITS. 

% —ACTIONS TO RECOVER DEPOSITS.—INTER¬ 

PLEADER.—COSTS.—STATUTE OF LIMIT¬ 
ATIONS.—REDUCTION OF LIABILI¬ 
TY.—DEPOSITS NOT TAXABLE. 

Deposits. —A Savings Bank shall have the power: 

To receive deposits of money. (238-1.) 

To collect and protest promissory notes and charge 
usual fees therefor. (238-6.) 

Shall not issue certificates of deposit payable on demand 
or on a fixed day. (243-2.) 

Preferences. —When the Superintendent deposits any 
unclaimed dividends or moneys of banks in liquidation in a 
savings bank, such deposits are entitled to preference in case 
of the insolvency of such savings bank. (45 and 70.) 

Restrictions: $3,000 Limit. —Aggregate amount to 
the credit of any individual at any time shall not exceed 
$3,000 exclusive of dividends. (247-1.) 

Included in this $3,000 shall be accounts in the “in¬ 
dividual” name and “voluntary and revocable trust” ac¬ 
counts (either as trustee or beneficiary of the trust) and 
“joint” accounts—but not moneys belonging to deceased per¬ 
sons’ estates or Surrogate court moneys—nor accounts “in 
trust for” nor “joint” accounts opened prior to July 1st, 
1913. Certified copies of wills or of appointment by Surro¬ 
gate shall be filed with the bank. (247-1.) 

Aggregate amount to the credit of any society or cor¬ 
poration at any time shall not exceed $5,000 exclusive of 
dividends—unless made pursuant to a judgment or decree— 
certified copy thereof to be filed. (247-2.) 


26 



Deposits and Withdrawals 

Parents may deposit for each dependent child $250 
every six months in addition to a $3,000 account for them¬ 
selves, children for dependent parents same amounts. 
(247-I-) 

The trustees of a savings bank may further limit ag¬ 
gregate amount—may refuse to receive a deposit—and may 
return all or any part of deposit. (247-3.) 

Withdrawals. —Sums deposited shall be repaid to the 
depositors or to their legal representatives, under regula¬ 
tions prescribed by the Board of Trustees of the savings 
bank, subject to the following restrictions: 

(a) Regulations to be posted in a conspicuous place in 

the banking room, 

(b) Regulations to be printed in passbooks and 

(c) Regulations so printed and published shall be 

evidence between the bank and the depositor 
holding passbook of terms upon which deposits 
are made. (248-1.) 

Amounts may be repaid by draft or in foreign ex¬ 
change at current rates. (238-4.) 

Sixty Days' Notice. —The bank may at any time by 
resolution of its board of trustees require a notice of 60 days 
before repaying deposits—personal notice of depositor then 
necessary. (248-1.) 

Contracts heretofore made are not impaired by new 
banking law. (248-1.) 

Payments may be made before the expiration of 60 
days. (248-1.) 

“60 days’ notice” shall not be waived in advance and 
more than “60 days’ notice” shall not be required at any 
time. (248-1.) 

Passbooks. —No withdrawals or checks shall be paid 
unless the passbook of the depositor be produced and entry 
made therein. (248-2.) 

The Board of Trustees may provide by its By-laws for 
making payments in cases of lost passbooks or in other ex¬ 
ceptional cases. (248-3.) 


27 


Digest of Savings Bank Laws 


Death Cases. —In case of the death of a depositor the 
sums deposited shall be repaid to his legal representatives. 
(248-1.) 

However, when balance does not exceed $250 and no 
probate or administration proceedings are necessary other¬ 
wise, savings bank may in its discretion pay the amount to 
widow or widower, next of kin, funeral director or other 
creditor who may appear to be entitled thereto. 

As conditions for such payments the bank may require: 

(a) Proof by affidavit as to the parties in interest, 

(b) Filing of proper waivers, 

(c) Execution of bond of indemnity, with sureties, 

(d) Proper receipt. 

For any such payments the savings bank shall not be 
held liable to the executor or administrator, unless payment 
was made within one year of decedent’s death, and 

Action was commenced within one year after payment. 
(248-4.) 

Taxable Transfers of Deposits. —No Savings Bank 
having in possession deposits or assets either 

(a) standing in the name of a decedent who was a 

resident or non-resident, or 

(b) standing in the joint names of such decedent and 

one or more persons: 

shall transfer the same 

(a) to the executors, administrators or legal represent¬ 

atives of said decedent, or 

(b) to the survivor or survivors, when held in the joint 

names of a decedent and one or more persons, or 

(c) upon their order or request, 
unless 

(a) notice be served upon State Comptroller 10 days 
prior to said transfer, or 

W a sufficient amount thereof be retained to pay any 
tax which may be assessed on the said transfer, 
or 

(c) the State Comptroller consents thereto in writing 
(by issuing Transfer Tax Waiver). (Tax Law 
227.) 


28 


Deposits and Withdrawals 

Comptroller empowered to examine deposit at time of 
delivery. (Tax Law 227.) 

Savings Bank Liable for Transfer Tax. —Failure 

(a) to serve such notice, 

(b) to allow such examination, 

(c) to retain sufficient amount to pay tax (without 

waiver) 

shall render bank liable 

(a) for tax and in addition thereto 

(b) a penalty of not less than $5.00 nor more than 

$25,000. 

Comptroller may enforce payment of tax or penalty or 
both in any court of competent jurisdiction. (Tax Law 227.) 

Minors as Depositors. —Minors may make deposits as 
if they had attained majority—such deposits to be free from 
t the control of all persons except creditors. (249-1.) 

Withdrawals by minors to discharge bank. (249-1.) 

Trust Accounts. —Deposits in trust for another may 
be paid to person for whom deposit was made, provided no 
further notice of existence or terms of trust was given to 
bank. (249-2.) 

Joint Deposits. —Joint accounts to be paid to either de¬ 
positor, or the survivor, shall constitute joint tenancy, i. e., 
the account is payable to either during lifetime of both or 
to the survivor after the death of one. (249-3.) 

Receipt of one of the joint tenants, in absence of a writ¬ 
ten notice not to pay, shall discharge the bank. (249-3.) 

The opening of a joint account—in absence of fraud or 
undue influence—shall be conclusive evidence of intention 
of both depositors to vest title to the account in the survivor. 

(249-3-) 

Interpleader, by order, is allowed to savings bank, 
i. e., when a savings bank is sued and a third party claims 
the amount due or part thereof—the bank may ask the 
court to substitute the third party for the bank in the action 
and pay money into court and be discharged. (Section 820 
Code Civil Procedure.) 


29 


Digest of Savings Bank Laws 


On petition of savings bank and upon eight days’ notice 
to plaintiff and other claimants court may amend proceed¬ 
ings by making other claimants parties defendants. This 
remedy is in addition to that of Section 820 C. C. P. (250-1.) 

Funds in dispute may remain on deposit with bank and 
shall be entitled to receive same dividends as other accounts. 
(250-2.) 

When deposit is paid into court, the bank is discharged 
from liability and name stricken off action. (250-2.) 

Costs against savings bank to be in the discretion of the 
court. (250-3.) 

Costs may be charged upon the fund affected by the 
action. (250-3.) 

Statute of Limitations. —When an account is closed 
on the bank’s books and paid, action to recover must be com¬ 
menced within 20 years after date of such payment. (250-4.) 

In other actions brought by depositors, etc., for de¬ 
posits, the statute of limitations does not apply (250-4), 
except that actions to recover payments of less than $250 
made to a relative or next of kin, etc., of deceased depositors 
shall be commenced within one year after payment. (248-4.) 

Reduction of Li ability. —When estimated value of as¬ 
sets is less than amount due depositors, the Supreme Court 
may, upon petition of the savings bank, approved by the 
Superintendent, order a reduction of liability to each de¬ 
positor and divide the loss equitably among the depositors. 
(280.) 

Property Liable to Taxation—shall be 

(a) All real property within this State, and 

(b) All personal property situated or owned within this 

State, unless exempt from taxation by law. 
(Tax Law 3.) 

Tax Law, Section 4, gives twenty subdivisions of 
exceptions, and pertinent to savings bank de¬ 
positors is subdivision 14, viz.: 

“The deposits in any bank for savings which are 
due depositors’’—shall be exempt from taxation. 
(Tax Law New York, Section 4, Subdivision 
I 4-) 


30 


CHAPTER VI. 

DORMANT ACCOUNTS. 


REPORTS : YEARLY.—FOR I914.—SUBSEQUENT.—ADVERTISE¬ 
MENTS.—PREFERENCES.—INDEX KEPT BY 
superintendent AND PAYMENTS. 

Yearly Report. 

On September ist each year a Report of Dormant Ac¬ 
counts shall be made to Superintendent of Banks, verified 
by oath of two officers. Accounts of $10 or more which on 
August ist have not been increased or diminished by de¬ 
posits or withdrawals, or the passbooks of which have not 
been presented for entry of interest, for twenty years, shall 
be considered dormant. (274.) 

Report for 1914. 

Report for 1914 to contain all Dormant Accounts with 
balance over $10—giving: 

Date of original deposit, 

Name of depositor, 

Last known place of residence, 

Occupation, 

Date of birth, 

Nationality, 

Parents’ names, if known, 

Date of last dividend credited, 

Date of last deposit or draft, 

Additional data which may aid to determine ownership, 
but not Amount. (274.) 

Subsequent Reports. 

Subsequent reports to contain all dormant accounts 
previously not reported, with the same detail, and a list of 
dormant accounts which have been paid or which have be¬ 
come active by the presentation of passbooks. (274.) 

Advertisement of Dormant Accounts. 

After September 1st, 1914, a list of names and addresses 
of Additional Dormant Accounts shall be published once a 
week for two successive weeks in a newspaper, published in 
the village, borough, or city in which the bank is located and 
once in legal notice paper in Albany. (274.) 


3 1 



Digest of Savings Bank Laws 


Verified proof of publication to be filed with Superin¬ 
tendent on October 1st each year. (274.) 

For failure to report or file proof of publication, $100 
fine for each day unless time is extended by Superintendent. 
( 274 .). 

Time may be extended 20 days. (49-2.) 

On the second Wednesday of January, 1916, and every 
5 years thereafter, Superintendent shall publish in the 
Albany legal notice paper, and 

In at least one daily newspaper, of each city of the first 
and second class within State: 

A list containing names of savings banks and all other 
banks, etc., holding unclaimed deposits; and names of liquid¬ 
ated banks, etc., holding unclaimed deposits; together with 
full names of persons entitled to such unclaimed deposits. 
(46.) 

Preferences. 

After liquidation of any bank, the Superintendent may 
take and hold as trustee all unclaimed deposits (45) 

And shall deposit them in State banks, trust companies, 
or Savings Banks to the credit of the Superintendent in 
trust for person entitled thereto. (45.) 

Such deposits shall be entitled to preference in case of 
the insolvency of depositary bank, as also other collections 
deposited by Superintendent. (45 and 70.) 

Index Kept by Superintendent and Payments. 

Superintendent shall keep an Index of all unclaimed 
deposits (a) held by him, and (b) of those reported to 
him. (47.) 

To any person showing by evidence, satisfactory to 
Superintendent, that he is entitled to receive such money, 
Superintendent shall indicate bank holding same. (47.) 

In case of liquidated bank, Superintendent may pay to 
such person unclaimed deposit and if paid in good faith 
be held harmless. (47.) 

If in doubt as to rightful owner, or conflicting claims 
arise, he may require a Supreme Court order, authorizing 
and directing payment. (47.) 


32 


CHAPTER VII. 

BOOKKEEPING AND REPORTS. 


BOOKKEEPING.-TRIAL BALANCE.-ASSETS, HOW ENTERED._ 

AMORTIZATION.-REPORTS : SEMI-ANNUAL.- 

OTHER.-FOR FRANCHISE TAX. 


Bookkeeping. 

A Savings Bank shall keep its books , records and ac¬ 
counts so that its true condition may be readily ascertained 
by Superintendent, who has discretionary power to order 
books and accounts opened and accurately and conveniently 
kept. (56-4.) y 

Penalty for neglect to obey such order, $100 fine for 
each day. (246-4.) 

Trial Balance. 

An accurate Trial Balance of depositors’ ledgers shall 
be taken every six months. (272.) 

Assets, How Entered. 

All Assets shall be entered and carried on the books, in 
the name of the bank and under truly descriptive title. 
(246-1.) 

Stocks, bonds, etc., shall not be entered at more than 
the actual cost and not thereafter be carried at more than 
the amortized value. (246-2.) 

Amortization. 

Deductions and additions to the cost shall be made for 
the semi-annual amortization of premiums and discounts 
respectively— the profit and loss account being charged and 
credited at dividend periods or at least once a year with 
amounts deducted or added in order to bring value of securi¬ 
ties to par at maturity. (246-2.) 

Real Estate shall not be carried at more than cost. 

(246-30 


33 



Digest of Savings Bank Laws 


Semi-Annual Reports. 

A Semi-Annual Report shall be made on or before Feb¬ 
ruary ist and August 1st in each year as of the morning of 
January ist and July ist respectively. (273-1.) 

And shall be in the form prescribed by the Superin¬ 
tendent. (273-1 and 42.) 

Contents of Report: 

Assets: 

Amount loaned on Bond and Mortgage. 

List of new Bonds and Mortgages since last report, 
showing location of mortgaged premises. 

List of Bonds and Mortgages previously reported, but 
paid wholly, or in part, or foreclosed, stating 
amounts of such payments and proceeds of fore¬ 
closures. 

Stocks and Bonds, stating cost, date of purchase, date 
of maturity, rate, amortized value as determined 
according to Section 246, par value, market value 
as determined by prices furnished by the Super¬ 
intendent, according to Section 53, on June ist and 
December ist each year. 

Amounts loaned on promissory notes, stating col¬ 
lateral held to comply with Section 239-8. 

Real Estate, giving cost to comply with Section 253- 
1 b. 

Real Estate purchased at foreclosure, stating actual 
cash value, as appraised by its trustees according 
to Section 253-1 c. 

Cash on hand. 

Cash on deposit, giving amounts in each bank. (273- 

2.) 

Liabilities .—Amounts due depositors, including divi¬ 
dend about to be credited. 

All other debts and claims chargeable upon its assets. 
(273-2.) 

Statistics .—Amount deposited and amount withdrawn 
during year. 


34 


Bookkeeping and Reports 


Interest received or earned. 

Dividends credited to depositors and rate. 

Accounts opened and accounts closed. 

Number of open accounts at end of period. 

And other information as Superintendent may require. 

(273-2.) 

Report shall also state the fact that a semi-annual Trial 
Balance has been taken, and the discrepancy, if any, between 
general ledger and depositors’ individual ledgers. (272.) 

Report to be verified by oath of two officers in charge 
of bank (273-3), an d based on Semi-Annual Trustees’ Com¬ 
mittee Examination and verified by majority of the members 
of such committee. (272.) 

Other Reports. 

Special reports to be made as Superintendent directs. 

(273-4.) 

Superintendent shall prescribe form and contents of all 
reports and may prescribe form of verification. (42.) 

Penalty for failure to make any report is: $100 fine 
every day. (273-5.) 

Superintendent may extend time to make report 20 
days. (49- 2 0 

No other reports to be required except as provided in 
this Banking Law —and no inspection or interference from 
local boards, etc., allowed. (275.) 

Franchise Tax Report. 

Franchise Tax Report shall be made on or before 
August 1 st each year as of July 1st, stating par value sur¬ 
plus, and undivided earnings and such other data as State 
Comptroller may require. (Section 196-8 Tax Law.) 


35 


Digest of Savings Bank Laws 


CHAPTER VIII. 

GUARANTY FUND AND UNDIVIDED 
PROFITS. 

SURPLUS.-NET EARNINGS.-GUARANTY FUND.-UNDIVIDED 

PROFITS.-HOW DETERMINED.-HOW ACCUMULATED.- 

ADVERTISEMENTS.-INITIAL GUARANTY FUND. 

Surplus means the Excess of Assets Over Liabilities. 

(3-) 

Total Profits means total amount of undistributed net 
earnings from the date of organization, including such por¬ 
tion of guaranty fund as has been derived from net earnings 
or from undivided profits. (3.) 

Net Earnings means excess of gross earnings over ex¬ 
penses and losses chargeable against such earnings during 
any dividend period. (3.) 

Guaranty Fund. 

The Guaranty Fund is only created by a “mutual non¬ 
stock corporation” and shall consist of: 

(a) The Surplus of every savings bank at the time this 

act takes effect. (252.) 

(b) Amounts contributed by incorporators of a new 

savings bank, to the amount of at least $5,000, 
and such further contributions to maintain sol¬ 
vency of bank. (234-2.) 

(c) Deductions made from net earnings and credited to 

guaranty fund, when latter is less than 10% of 
amount due depositors. (255.) 

(d) Other amounts which trustees deem expedient and 

for the security of depositors to add. (234-1 and 
256-1.) 

Undivided Profits. 

Undivided Profits means credit balance of Profit and 
Loss Account. (3.) 


36 


Guaranty Fund and Undivided Profits 


Undivided Profits may be carried to maintain the rate 
of dividends. (256-1 and 256-6.) Undivided Profits are po¬ 
tentially a part of the guaranty fund, although theoretically 
not so considered. 

Object of Guaranty Fund. 

The Guaranty Fund shall be for the security of de¬ 
positors and shall be held: 

(a) To meet losses from depreciation of securities. 

(3 and 252.) 

(b) To meet losses arising otherwise. (3 and 252.) 

(c) To pay dividends when guaranty fund and undi¬ 

vided profits amount to more than 25% of 
amount due depositors. (256-6.) Excess to be 
divided once every three years equitably. (256- 

(d) To repay incorporators’ contributions to expense 

fund when such payments shall not reduce guar¬ 
anty fund below 5% of amount due depositors. 
(236-1.) 

(e) To repay incorporators’ contributions to guaranty 

fund when all contributions to expense fund 
have been repaid and such payments do not re¬ 
duce guaranty fund below 5% of amount due 
depositors. ( 236-2.) 

Guaranty Fund shall not be available: 

(a) For expenses, so long as any undivided profits on 

hand. (3.) 

(b) For dividends (3) until it reaches 25% of amount 

due depositors. (234-3 and 256-6.) 

Guaranty Fund— How Determined. 

Subtract—(Total Liabilities due and accrued plus 
(Undivided Profits plus 
(Net Earnings since last declaration of divi¬ 
dend— 

From-Total Assets. (253-1.) 


37 


Digest of Savings Bank Laws 


Value of Assets for this calculation to be: 

(a) Stocks, bonds, etc., at estimated market value as 

last determined by the Superintendent (253-1 a) 
and furnished to each savings bank on June 1st 
and December 1st of each year, Superintendent 
being governed in making such valuations by 
actual sales during preceding 5 months and by 
general business conditions. (53. ) 

(b) Real Estate at not in any event above cost. (253- 

1 b.) 

(c) Foreclosed property at not above actual cash value 

as determined by written appraisal signed by 
three trustees and filed. (253-1 b.) 

(d) Exclude: Assets disallowed by Superintendent or 

trustees. (253-ic.) 

Exclude unsecured debts due without prosecution 
for one year or upon which no interest was paid 
for one year. (253-ic.) 

Exclude judgments unsatisfied for two years. 
(253-ic.) 

Unless Superintendent upon application fix valua¬ 
tion for such assets excluded. (253-ic.) 

If secured by real estate, value to be actual cash 
value of real estate as determined by a written 
appraisal signed by three trustees and filed with 
the bank. (253-1 c.) 

Guaranty Fund once determined is brought down to 

date 

(a) By Adding any appreciation in the market value 

of securities, resulting from their re-valuation by 
the Superintendent, plus 

Any sums recovered or allowed on items excluded, 
and 

(b) Deducting all items disallowed plus 
Depreciation below previous estimated market 

value, plus 

All debts on which interest has not been paid for 
one year plus 

Judgments unsatisfied for 2 years. (253-2.) 

38 


Guaranty Fund and Undivided Profits 

Unless the Superintendent, upon application, shall 
have fixed valuation for such assets excluded and 
then net deficiency shall be subtracted. (253-2.) 

Guaranty Fund —How Accumulated. 

If at the close of any dividend period the guaranty fund 
be less than 10% of amount due depositors, deduct from net 
earnings for the period and credit the guaranty fund: 

5% of net earnings during 1914 
6% of net earnings during 1915 
7% of net earnings during 1916 
8% of net earnings during 1917 
9% of net earnings during 1918 
10% of net earnings during 1919 
and 10% during any year thereafter. (255.) 

In any case, however, only so much of such percentages 
as will not force the dividend below 3/4%. (255.) 

While trustees are paying expenses, the above percent¬ 
ages shall be computed on amounts credited as dividends 
instead of upon net earnings. (255.) 

In addition to above amounts trustees may add to guar¬ 
anty fund such further amounts as they may deem expedi¬ 
ent and for the security of depositors. (256-1.) 

Minimum Guaranty Fund. —Deductions from earnings 
shall be made until the Guaranty Fund equals 10% of 
amount due depositors. (256-1.) 

Maximum Guaranty Fund. —Deductions shall cease 
when Guaranty Fund and Undivided Profits together equal 
25% of amount due depositors. (256-6.) 

Advertisements. 

Advertisements of Guaranty Fund by sign or notice or 
advertisement or advertising literature shall not state an 
amount in Excess of Market Value Surplus or guaranty 
fund, as determined by Sections 253-10, b, and c, and 53, 
unless the nature of the same be clearly made to appear. 

(258.) 


39 


Digest of Savings Bank Laws 


Initial Guaranty Fund—Incorporators' Certificates. 

Initial Guaranty Fund. —Before a new savings bank 
shall be authorized to do business, its incorporators shall 
create a guaranty fund of at least $5,000 (234-2) ; by con¬ 
tributions to the initial guaranty fund paid in cash. (23.) 

Prior to liquidation such initial guaranty fund shall not 
be encroached upon, except for losses and the repayment of 
incorporators’ unimpaired contributions thereto, until it 
reaches 25% of amount due depositors. (234-3.) 

Incorporators' Certificates. —For such amounts savings 
banks may issue transferable certificates showing that they 
do not constitute a liability except as provided in the Bank¬ 
ing Law. (238-2.) 

Such contributions shall not constitute a liability (234- 
4); except that they may be repaid pro rata if contributions 
to expense fund have been repaid and such payments.do not 
reduce guaranty fund below 5% of amount due depositors. 
(236-2.) 

In case of liquidation any portion of contributions over 
and above liabilities may be repaid to contributors pro rata. 
(236-1 and 236-2.) 

Return of Contributions heretofore made may take 
place in accordance with the provisions of any agreement 
made with the Superintendent as to such return. (237.) 


40 


CHAPTER IX. 


DIVIDENDS. 


GROSS EARNINGS.-NET EARNINGS.-UNDIVIDED PROFITS.— 

DIVIDENDS I RATE, NOTICE, PERIOD.-RESTRICTIONS.- 

EXTRA DIVIDENDS.-DAYS OF GRACE.-LIABILITY 

FOR EXCESS DIVIDENDS. 


Gross Earnings. 

Gross Earnings Include: 

(a) All earnings actually received, less interest accrued 

and unpaid included in previous calculation. 
(254-1 a.) 

(b) Interest, accrued and unpaid, secured by collateral, 

not in default for more than one year. (254-1 b.) 

(c) Interest accrued on stocks and bonds not in de¬ 

fault. (254-1&.) 

(d) Amount of discounts amortized. (254-ic.) 

(e) Profits actually received from sale of stocks, bonds 

or real estate. (254-id'.) 

Net Earnings. 

To Determine Net Earnings —Deduct from Gross Earn¬ 
ings: 

(a) All expenses paid and incurred, both ordinary and 

extraordinary, less expenses, accrued and un¬ 
paid, included in previous calculation. (254-20.) 

(b) Interest paid or accrued and unpaid on debts ow¬ 

ing by it. (254 -2b.) 

(c) Amount of premiums amortized. (254-2C.) 

(d) Losses in excess of guaranty fund and undivided 

profits. (254-2^.) 

This will give net earnings for the period. (254-2C/.) 
When Guaranty Fund is less than 10% of amount due 
depositors, deduct 5, 6, 7, 8, 9 or 10% for years 1914 to 
1919 respectively, and 10% every year thereafter from net 
earnings and net earnings remaining shall be available for 
dividends. (255.) 


4i 



Digest of Savings Bank Laws 


Depositors shall receive as nearly as may be all the 
earnings remaining. (256-1.) 

Undivided Profits. —Trustees may deduct from net 
earnings and carry as undivided profits, for the purpose of 
maintaining rate of dividends, such additional sums as they 
may deem wise. (256-1.) 

Dividends : Rate, Notice, Period. 

Rate of Dividends. —Shall not exceed 5% per annum. 

(256-1.) 

Notice posted conspicuously in banking room, of a 
change in rate, shall be equivalent to a personal notice. 
(256-6.) 

Dividend Period is period from last dividend to date 
selected for next dividend or from organization to first 
dividend. (3.) 

Restrictions and Extra Dividends. 

Restrictions. —Depositors may be divided into classes 
according to character—amount—or duration of deal¬ 
ings regulating dividends that each depositor receive same 
ratable portion of dividends as other members of his class. 
(256-2.) 

Contributions to guaranty fund and expense fund by 
incorporators or trustees of new savings bank shall be en¬ 
titled to same dividends as depositors. (256-3.) 

If guaranty fund will not be reduced below 5% of 
amount due depositors, such amounts contributed may be 
refunded with back dividends at same rate as paid to de¬ 
positors. (236-1 and 2 and 256-3.) 

No dividend shall be declared, credited or paid except — 
as authorized by vote of majority of board of trustees—duly 
entered upon minutes, recording “Ayes” and “Nays” upon 
each vote. (256-40.) 

No other dividend shall be declared, etc., except 

(a) Regular, quarterly or semi-annual dividend (256- 
4b), or 


42 


Dividends 


(b) Extra dividend when guaranty fund and undivided 
profits amount to more than 25% of amount due 
depositors, and then excess is to be divided 
equitably at least once every three years. (256-6.) 

Days of Grace: 

Ten business days commencing semi-annual period and 

Three business days commencing quarterly period and 

Three business days ending semi-annual or quarterly 
period may be declared by trustees to be days of grace and 
interest may be paid on deposits, lacking those days to make 
a full period of six or three months. (256-4C.) 

Accounts closed between dividend periods may have 
interest credited at last dividend rate, up to date of closing, 
if by-laws so provide. (256-4C.) 

Liability of Trustees for Excess Dividends. —Trustees 
voting for a dividend shall be jointly and severally liable to 
bank for dividends declared and credited in excess of profits 
earned and appearing to credit of bank since last dividend, 
after making deductions (256-5) as follows: 

(a) For expenses (254-20. and 254-2Z?), 

(b) For amortization (246), 

(c) For guaranty fund. (255.) 

The “Ayes” and “Nays’’ shall be recorded upon each 
vote on a dividend to be declared. (256-40.) 

A Trustee shall not have any interest whatever, direct 
or indirect, in the profits of the bank. (Constitution New 
York, Article VIII, Section 4.) 


43 


Digest of Savings Bank Laws 


CHAPTER X. 

EXPENSE FUND. 

INCORPORATORS' EXPENSE FUND.-AUTHORIZED PAYMENTS.- 

EXPENSES OF BANKING DEPARTMENT.-FAILURE TO PAY.- 

PRIORITIES.-AVAILABLE FUND.-EXPENSES DEDUCTED 

FROM GROSS EARNINGS.-COMPENSATION TO TRUS¬ 
TEES.—EMPLOYEE'S FIDELITY BONDS.-PENSIONS. 

-FRANCHISE TAX.-FEDERAL INCOME TAX. 

Incorporators' Expense Fund. 

An Expense Fund shall be created by incorporators of 
a new savings bank, from which the expense of organizing, 
and all operating expenses may be paid, until earnings are 
sufficient to pay expenses in addition to dividends declared 
and credited to depositors from its earnings. (235.) 

Original expense fund $5,000 and undertaking by incor¬ 
porators to further contribute to pay expenses until earnings 
are enough to pay expenses in addition to dividends. (235.) 

All amounts contributed by incorporators to initial 
guaranty fund and expense fund shall not constitute a lia¬ 
bility, but may be repaid when repayment does not reduce 
guaranty fund to less than 5% of amount due depositors. 
(234-4, 235 and 236.) 

Transferable certificates may be issued for amounts so 
contributed by incorporators or trustees, which shall show 
that they are not a liability except as provided in Banking 
Law. (238-2.) 

Contributions heretofore made to expense fund or ini¬ 
tial guaranty fund, under agreement with Superintendent 
that such contributions may be repaid, whenever such return 
shall not affect solvency or render it unsafe to continue, may 
be returned in accordance with agreement. (237.) 

Authorized Payments and Assessments. 

Authorized Payments. —Only such current and neces¬ 
sary expenses as are Authorized by the Board of Trustees 
shall be paid by the trustees or officers. (267-20.) 


44 



Expense Fund 


Expenses may not be paid out of guaranty fund, so 
long as any undivided profits are on hand. (3.) 

Expenses shall be deducted before the dividend is de¬ 
clared. (256-5.) 

The General Expenses of Banking Department shall be 
assessed by Superintendent as he deems just and reasonable, 
against all savings banks and other corporations. (17.) 

All expenses incurred and services performed on ac¬ 
count of individual savings bank shall be charged to and 
paid by bank benefited. (17.) 

The amount assessed by Superintendent shall become 
a liability of savings bank as soon as bank is duly notified 
thereof. (277.) 

For Failure to Pay after due Notice 

(a) Any assessment for expenses of banking depart¬ 

ment, or 

(b) Any penalty or forfeiture incurred under the 

Banking Law—Superintendent, through attorney- 
general, shall institute proceedings as warranted 
by the facts. (31.) 

Priorities. —All unpaid Assessments, Penalties and For¬ 
feitures are Entitled to Priority in case of voluntary or in¬ 
voluntary liquidation or insolvency of bank. (32.) 

Available Fund.—Expenses: How Paid. 

An Available Fund, not to exceed 20% of deposits, com¬ 
posed of cash on hand and cash on deposit, may be kept for 
purpose of paying withdrawals in excess of receipts and 
meeting current expenses. (251.) 

Expenses deducted from Gross Earnings. —All expenses 
paid or incurred, both ordinary and extraordinary, in the 
transaction of its business, the collection of its debts and 
the management of its affairs shall be Deducted from the 
Gross Earnings before apportioning net earnings to the 
guaranty fund and to dividends. (254-20.) 

Losses of all kinds sustained, are charged against the 
Guaranty Fund. (252 and 234-3.) 

Dividends against the net earnings and undivided prof¬ 
its. (255 and 256-1, and 256-6.) 


45 


Digest of Savings Bank Laws 


Compensation of Trustees. 

Compensation to Trustees. —Expense Fund may be 
charged with Compensation to Trustees who serve : 

(a) As officers, and are required to regularly attend at 

the bank (265-2), or 

(b) On Semi-Annual Examining Committees (272), or 

(c) To investigate Loans on Bond and Mortgage (239- 

6), or 

(d) To submit monthly or regular statement of Invest¬ 

ments (264-3), or 

(e) Act on special Committees provided for in the By¬ 

laws. (265-2.) 

(f) Attorney, although a trustee, may be paid reason¬ 

able compensation for his services. (265-3.) 

All these may receive compensation from Expense 
Fund as majority of board thinks just and reasonable (265- 
2), but such majority shall be exclusive of trustee to whom 
any compensation is voted. (265-2.) 

Premiums on Fidelity Bonds of officers, clerks or other 
employees may be paid as a necessary expense. (270.) 

Pensions to Employees 

Pensions. —Trustees shall have discretionary power: 
To retire officers, clerks and other employees: 

(a) Who have served 30 years or more, 

(b) Who have served 20 years or more, and are phys¬ 

ically or mentally incapacitated and 

(c) Who have served 20 years or more and have at¬ 

tained the age of 60 years (271) ; And 
To pay in equal monthly instalments, not exceed¬ 
ing 2% of average annual salary for three years 
immediately preceding retirement, for each year 
of service in the bank. 

Maximum annual amount shall not exceed 60% of 
average annual salary. (271.) 


46 


Expense Fund 


Table of Pensions. 


After 

20 

years 

of 

service 

40 % 

of average annual salary 
for last 3 years of service 

After 

21 

years 

of 

service 

42 % 

thereof 

After 

22 

years 

of 

service 

44% 

thereof 

After 

23 

years 

of 

service 

46% 

thereof 

After 

24 

years 

of 

service 

48% 

thereof 

After 

25 

years 

of 

service 

50% 

thereof 

After 

26 

years 

of 

service 

52% 

thereof 

After 

27 

years 

of 

service 

54% 

thereof 

After 

28 

years 

of 

service 

56% 

thereof 

After 

29 

years 

of 

service 

58% 

thereof 

After 

30 

years 

of 

service 

60% 

thereof—the maximum. 
(271.) 

Franchise 

Tax— 

-Reports— 

■Penalties—Exemptions. 


Franchise Tax. —Every savings bank shall pav to the 
state annually for privilege of exercising its corporate 
franchise or carrying on its business—an annual tax equal 
to one per cent, of par value of its surplus and undivided 
earnings. (Section 189 of Tax Law of New York State, 
being Chapter 62 of Laws of 1909.) 

Par Value Surplus determined by estimating stocks and 
bonds at par if selling above par, at market value if selling 
below par—Real Estate not above cost. (257.) 

Stocks and Bonds, in arrears for 6 months’ interest, at 
valuation placed thereon by Superintendent from best in¬ 
formation obtainable. (54 and 257.) 

All Savings Banks paying a Franchise Tax are exempt 
from assessment and taxation upon personal property for 
state purposes. (Section 205 Tax Law.) 

Franchise Tax Reports. —Every Savings Bank liable to 
pay a tax under Section 189 Tax Law shall on August 1st 
each year report as of July 1st, stating par value surplus and 
undivided earnings and other data required by State Comp¬ 
troller. (Section 196-8 Tax Law.) 


47 


Digest of Savings Bank Laws 


Franchise Tax payable September ist each year. (Sec¬ 
tion 197 Tax Law.) 

Penalty 5% of Tax in addition if not paid within 30 
days—1% additional for each month while it remains un¬ 
paid. For failure to report, same penalty. (Section 197, Tax 
Law.) 

Tax Exempt State Bonds. —A savings bank owning 
3% Bonds of the State of New York which are registered 
in its own name on June 30th, prior to the date on which 
tax is payable, shall have credited to it 1% of Par Value of 
such Bonds, to be applied upon the payment of Franchise 
Tax for that year. 

In no case shall there be credited more than there is 
tax due. (Tax Law 190, being Chapter 794, Laws of 1913.) 

Savings Banks Exempt from Federal Income Tax .— 
Section 11 of the United States Tariff Act of 1913 relates 
to tax on incomes derived from all sources, but exempts the 
earnings of Savings Banks as follows: 

“That nothing in this section shall apply to mutual sav¬ 
ings banks not having a capital stock represented by shares.” 
(United States Tariff Act, 1913, Section 11, Subdivision 
Go.) 


48 


CHAPTER XI. 


BOARD OF TRUSTEES. 


NUMBER.-VACANCIES.-QUALIFICATIONS.-OATH AND DE¬ 
CLARATION.-REMOVAL FROM OFFICE.—PROCEDURE.—FOR¬ 
FEITURES OF OFFICE.-EXCEPTIONS.-RE-ELECTION.-BY¬ 

LAWS, RULES AND REGULATIONS.—OFFICERS.—MEET¬ 
INGS.—QUORUM.—INVESTMENTS. COMPENSATION. 

ATTORNEYS.-OTHER RESTRICTIONS.-LI ABILITY 

FOR ACTS AND EXCESS DIVIDENDS.—COMMIS¬ 
SIONS. -SEMI - ANNUAL COM MITTEE.-COM¬ 

MUNICATIONS FROM BANKING DEPART¬ 
MENT.-EXAMINATIONS BY BANKING 

DEPARTMENT. 

The Board of Trustees shall consist of not less than 
nine nor more than thirty members. (260.) 

Vacancies shall be filled as soon as practicable at a regu¬ 
lar meeting. (269.) 

Where now more than 30 trustees—vacancies shall not 
be filled until reduced to 30. (266-3.) 

By resolution, incorporated in its By-laws, number may 
be increased not to exceed 30, provided Superintendent gives 
his written consent for reasons satisfactory to himself. 
(266-1.) 

Reduction of number to not more than 30 or less than 
9 may be effected by not filling vacancies until number de¬ 
signated in resolution is reached. (266-2.) 

The Incorporators shall be the first trustees. (260-1.) 

Qualifications and Removal from Office. 

The following shall be disqualified to act as trustees of 
Savings Banks: 

(a) Non-residents of this state— 

Provided one-fifth of any New York City Savings 
Bank’s Trustees may be residents of states ad¬ 
joining New York City. (260-20.) 

(b) Those adjudicated bankrupts, or 

Those having taken benefit of any insolvency law, 
or 


49 



Digest of Savings Bank Laws 

Those having made an assignment for benefit of 
creditors. (260 -2b.) 

(c) Those having suffered a judgment for money 
To remain unsatisfied of record 

Or unsecured on appeal—for more than 3 months. 
(260 -2C.) 

(d) Trustees, officers or any employees of other sav¬ 

ings banks. (26o-2d.) 

(e) And a person shall not be a trustee solely by reason 

of his holding a public office. (260-3.) 

Removal from Office. —A Trustee may be removed from 
office, on charges: 

(a) That his conduct and habits are of such a character 

as to be injurious to the bank, or 

(b) That he has been guilty of acts that are detri¬ 

mental or hostile to the interests of the bank. 
(268-1.) 

Procedure in Removal of Trustee. 

(a) Serve a written copy of the charges upon Trustee 

at least two weeks before the meeting at which 
he is to be tried; 

(b) Record “Ayes” and “Nays” of the vote in the 

minutes; 

(c) The affirmative vote of three-fourths of the total 

number of Trustees is necessary to remove; 

(d) Such removal shall receive the written approval of 

the Superintendent, which shall be attached to 
the minutes and form a part of the record. (268- 

1.) 

Forfeiture of Office.—Exceptions.—Re-elections. 

Forfeiture of Office. —The office of a trustee shall im¬ 
mediately become vacant whenever he 

(a) Shall become disqualified for any of the reasons 
mentioned in Section 260, subdivision 2, viz., 
non-residence, bankruptcy or insolvency, being 
judgment debtor or becoming trustee or em¬ 
ployee of another savings bank. (268 -2b.) 


50 


Board of Trustees 

(b) Shall fail, when notified of -his election, to take an 

oath: 

To diligently and honestly administer affairs of the 
bank, and 

Not to. knowingly violate, nor willingly permit to 
be violated, any provisions of the savings bank 
laws. (268-20 and 261-1.) 

(c) Shall not prior to March 1st each year subscribe 

declaration that he is a trustee and has not re¬ 
signed, become ineligible or vacated his office as 
such trustee—such declaration to be acknowl¬ 
edged and' filed prior to March 10. (268-20 and 
261-2.) 

(d) Unless excused, shall have failed for six successive 

months: 

To attend regular meetings, or 

To perform any of his duties as trustee. (268-20.) 

(e) Shall have any interest, direct or indirect in the 

gains or profits of the savings bank (New York 
Constitution, Article VIII, Section 4, and 267-10), 
except to receive dividends upon his incorpora¬ 
tors unimpaired contributions to the guaranty 
fund and expense fund. (256-3.) 

(f) Shall become a member of the board of directors 

of a bank, trust company or national bank, of 
which board enough other trustees of such sav¬ 
ings bank are members to constitute with him a 
majority. (267-1 b and 268-20?.) 

(g) Shall directly or indirectly use any of the funds of 

the savings bank for himself or as agent or 
partner of another, except to make necessary 
payments as authorized by Trustees. (New York 
Constitution, Article VIII, Section 4, and 267-20^ 
and 268-20?.) 

(h) Shall directly or indirectly receive and retain for 

his own use 

Any commission on any loan made by the bank, 
or 


5i 


Digest of Savings Bank Laws 


Any compensation for services rendered to any 
borrower of the bank (267-2?? and 268-20?); 
excepting 

A trustee, however, acting as attorney for the bank, 
may receive reasonable compensation for his 
professional services. (265.) 

(i) Shall become an indorser, surety or guarantor, or 

in any manner an obligor for any loan made by 
the bank. (267-20? and 268-20?.) 

(j) Shall directly or indirectly, for himself or as agent 

or partner of another, borrow any funds or de¬ 
posits of the bank. (267-2? and 268-20?.) 

(k) Shall become owner of any real property upon 

which the bank holds a mortgage. (267-2? and 
268-20?.) 

Loan to or purchase by a corporation of which he 
holds 15% of stock or he and other trustees to¬ 
gether hold 25%, shall come under this restric¬ 
tion, except loan to or purchase by such corpora¬ 
tion occurred without his knowledge or against 
his protest. (267-2?.) 

Deposits in a bank or trust company not deemed a 
loan within meaning of this Section. (267-2?.) 

But this restriction does not prohibit loans to a 
religious corporation, club or membership cor¬ 
poration in which trustees though members or 
officers, have no financial interest. (267-2?.) 

However loan to or purchases of guaranteed mort¬ 
gages from stock corporations are included, if a 
trustee of savings bank holds 15% of stock or 
two or more trustees hold 25% of stock. (267- 
2?.) 

Exceptions .—A trustee shall not be held to have for¬ 
feited his office if before this chapter takes effect: 

(a) A loan was made by the savings bank to a corpora¬ 
tion of which he was a member or stockholder. 
(268-2d.) 


52 


Board of Trustees 


(b) , A purchase was made of any guaranteed mortgage 

by the savings bank from a corporation, of which 
he was a member or stockholder. (268 -2d.) 

(c) A purchase was made of any real estate, subject 

to a mortgage held by the savings bank, by a 
corporation of which he was a member or stock¬ 
holder. (268-20?.) 

Re-Election. —A trustee who has forfeited his office 
shall not be eligible to re-election (268-3), except forfeiture 
occurred solely by one or more of the following reasons or 
disqualifications and all disqualifications shall have been re¬ 
moved, viz., 

(a) Failure to file oath and make yearly declaration. 

(261-1, 261-2 and 268-3a.) 

(b) Failure to attend meetings or perform duties. (268- 

2 c and 268-3&.) 

(c) Disqualification through becoming non-resident. 

(268-3 c.) 

(d) Disqualification through becoming trustee or em¬ 

ployee of another savings bank. (268-3C.) 

(e) Disqualification through becoming director of bank, 

etc., and thus making a majority of savings bank 
trustees on the board. (267-1& and 268-3C.) 

By-Laws.—Powers.—Meetings.—Investments. 

By-Laws, Rules and Regulations not inconsistent with 
law, may be made by the board of trustees for the following: 

(a) Election of officers and prescribing their powers 

and duties and manner of discharging the same. 
(262.) 

(b) Appointment of committees and their duties. (262.) 

(c) Increase or reduction of number of trustees. (266.) 

(d) Payment of deposits subject to Sections 248 and 

249. 

(e) And generally for transacting, managing and di¬ 

recting affairs of savings bank. (262.) 

Trustees may limit aggregate amount which may be re¬ 
ceived from one depositor. (247-3.) 


53 


Digest of Savings Bank Laws 


May refuse to receive a deposit. (247-3.) 

And may return all or any part of a deposit. (247-3.) 

Copy of By-laws and all Amendments shall be trans¬ 
mitted to Superintendent. (262.) 

Officers elected by the board of trustees from their 
number or otherwise shall be a President, two Vice-Pres¬ 
idents and such other officers as they may deem fit. (263.) 

Regular Meetings of board of trustees shall be held at 
least once a month. (264-1.) 

A Quorum at any regular or special or adjourned meet¬ 
ing shall be not less than five, of whom President shall be 
one, except when he is prevented from attending by sickness 
or other unavoidable detention, when First Vice-President 
takes his place, when he also is absent Second Vice-Presi¬ 
dent acts. (264-2.) 

Less than a quorum shall have power to adjourn from 
time to time until next regular meeting. (264-2.) 

Investments.—A written statement of investments shall 
be prepared by officer or officers designated by resolution 
duly recorded in the minutes, containing: 

(a) The description of stocks and bonds purchased or 

sold, 

(b) A list of loans on bond and mortgage, and 

(c) A list of loans on demand promissory notes; 

Describing collateral as of the date of meeting, and in¬ 
cluding all items over $1,000, and 

Giving aggregate of loans to each individual, partner¬ 
ship, unincorporated association or corporation, whose liabil¬ 
ity has been increased $1,000 or more since last regular 
meeting. (264-3.) 

Officer or officers charged with duty shall submit writ¬ 
ten statement either 

(a) To each trustee at each regular meeting of the 

board, or 

(b) To an executive committee of not less than five 

members of the board. (264-3.) 


54 


Board of Trustees 


Failure to Report is a Misdemeanor. —Any officer or 
employee of a Savings Bank who 

(a) intentionally conceals from trustees any loans made 

between regular meetings or any purchase of 
securities, or sale of any securities, or 

(b) knowingly fails to report to its Board of Trustees, 

when required to do so by law, all loans and all 
purchases and sales of securities between regular 
meetings, is guilty of a Misdemeanor. (Penal 
Law, Section 290.) 

Nothing in this Section shall render any loan made in 
violation thereof invalid. (Penal Law, Section 290.) 

Copy of statement together with list of the trustees 
present at meeting, verified by an affidavit of the officer or 
officers charged with duty of preparing and submitting state¬ 
ment, shall be filed with the records of bank within one day 
after the meeting. (264-3.) 

Committee of Trustees shall investigate and certify 
value of all loans on bond and mortgage; report to be filed 
and preserved among records of bank; without it no such 
loans shall be made. (239-6.) 

Foreclosed Properties acquired by Bank shall have ac¬ 
tual cash value determined by a written appraisal, signed by 
at least three trustees and filed—such value to be used in 
estimating amount of guaranty fund. (253-1 fr.) 

Trustees shall invest as soon as practicable all moneys 
deposited in nine classes of property described in Section 
239, but they may keep on hand and on deposit 20% of 
amount due depositors, for paying withdrawals and current 
expenses. (251.) 

Co M PE NS ATION.-ReSTRI CTION S.-LIABILITIES. 

Compensation shall not be paid directly or indirectly to 
any trustee 

(a) For his attendance at meetings of the board, 

(b) Or for any other services as trustee (265-1) ; 
except 


55 


Digest of Savings Bank Laws 


(a) Trustees acting as officers, 

Whose duties require and receive their regular and 

faithful attendance at the bank. (265-2.) 

(b) Trustees appointed to examine vouchers and as¬ 

sets semi-annually. (272 and 265-2.) 

(c) Trustees appointed to investigate loans on Bond 

and Mortgage. (239-6 and 265-2.) 

(d) Trustees designated to prepare and submit written 

statement of investments (264-3 an d 265-2), and 

(e) Trustees rendering other special services as mem¬ 

bers of committees provided for in the By-laws. 

(265-2.) 

All these may receive compensation as majority of 
board thinks just and reasonable (265-2) ; but such majority 
shall be exclusive of any trustee to whom compensation is 
voted. (265-2.) 

Attorneys for the bank, although trustees, may receive 
reasonable compensation for professional services, includ¬ 
ing examinations and certifications of titles. (265-3.) 

A savings bank may require borrowers to pay all ex¬ 
penses of searches, etc., and attorney although a trustee 
may collect and retain for his own use usual fees for such 
services—excepting commissions as broker or on account of 
placing or accepting the loan. (265-3.) 

In addition to restrictions for the violation of which 
forfeiture of office is the penalty—there shall be the fol¬ 
lowing : 

Restrictions on Officers and Trustees : A trustee or 
officer shall not direct or require 

(a) A mortgage to negotiate Fire Insurance Policies 

through any particular insurance broker (267-2C) 

(b) Or attempt to divert to any particular insurance 

broker the patronage of borrowers of the bank on 

mortgage (267-2C.) or 

(c) Refuse to accept any insurance policy because it 

was not negotiated through a particular insur¬ 
ance broker. (267-2C.) 


56 


Board of Trustees 


Any Commissions received by an officer or attorney of 
a savings bank on any loan made by it, and not authorized 
by Section 265, to be retained for his own use or as reason¬ 
able compensation for professional services, shall immedi¬ 
ately be paid over to the Bank. (265-4.) 

Liability for Acts and Excess Dividends. —For viola¬ 
tion of official duties, trustees or officers are liable and may 
be sued by Superintendent within six years after cause of 
action has accrued. (81.) 

Trustees voting for dividend in excess of profits earned 
shall be jointly and severally liable for excess. (256-5.) 

Trustees not liable for investing in the duly issued 
bonds appearing on the last list of investments legal for 
savings banks issued by Superintendent, unless notified to 
contrary. (239-9C and 52.) 

Any officer or trustee making unauthorized investments 
of the bank’s funds, is guilty of a misdemeanor. (Penal 296.) 

Examinations.—Supervision. 

A Semi-Annual Committee of not less than three trus¬ 
tees shall thoroughly examine books, vouchers and assets 
and affairs generally on or before January 1st and July 1st 
each year. (272.) 

Reports to Superintendent are based on these examina¬ 
tions and verified by oath of majority of committee exam¬ 
ining. (272.) 

Trustees may require such examination at such other 
times as they shall prescribe. (272.) 

Trial Balance of Depositors’ ledgers shall be taken semi¬ 
annually and discrepancies reported. (272.) 

Communications from Banking Department directed by 
Superintendent of banks or one of his deputies 

To a savings bank or an officer thereof 

Relating to an investigation or examination conducted 
by the banking department, 

Or containing suggestions or recommendations as to 
conduct of the business— 


57 


Digest of Savings Bank Laws 


Shall be submitted by officer receiving it, to the board 
at next meeting, 

And duly noted in the minutes. (276.) 

Examination by Banking Department at least once in 
each year by personal visit of Superintendent, or deputies 
or examiners. (39.) 

Inquiry shall then be made as to 

(a) Condition and resources of bank. 

(b) Mode of conducting and managing its affairs. 

(c) Actions of its trustees. 

(d) Investment of its funds. 

(e) Safety and prudence of its management. 

(f) Security afforded those by whom its engagements 

are held. 

(g) Whether the requirements of its charter and of 

law have been complied with in the administra¬ 
tion of its affairs. 

(h) Such other matters as Superintendent may pre¬ 

scribe. (39.) 

Superintendent may make special investigations as he 
may deem necessary to determine whether savings bank 
violated any provisions of banking law. (39.) 

Superintendent or his examiners shall have power to 
put under oath and compel attendance of any person, whose 
testimony may be required at such examinations. (39.) 

The result of examination shall be certified on records 
of the Savings Bank. (40.) 

Examiner’s Reports shall be made under oath and shall 
be confidential and shall not be made public unless Super¬ 
intendent judges ends of justice or public advantage will be 
subserved—when he may publish report or any part thereof 
in one daily newspaper of New York City and in one news¬ 
paper of county in which bank is located, or in any other 
manner he may deem proper. (41.) 

The Penal Law Provisions Governing Savings Banks, 
Trustees, Officers and Clerks are contained in Chapter XIV. 
See page 74. 


58 


CHAPTER XII. 


NEW SAVINGS BANKS AND MERGERS. 


CONDITIONS PRECEDENT.-NOTICE OF INTENTION TO 

ORGANIZE.-ORGANIZATION CERTIFICATE.-SUPERIN¬ 
TENDENT’S DISCRETIONARY POWERS.-AUTHOR¬ 
IZATION CERTIFICATE.-INITIAL GUARANTY 

FUND.-INITIAL EXPENSE FUND.- 

FORFEITURE BY NON-USER.— 

MERGERS. 

Constitutional Limitations. 

The Legislature shall have no power to pass any Act 
granting any special charter for savings bank purposes. 
(Constitution New York, Article VIII, Section 4.) 

A Savings Bank may be formed for savings bank pur¬ 
poses under general laws. (Constitution New York, Article 
VIII, Section 4.) 

Notice of Intention.—Organization Certificate. 

Conditions Precedent.—The proposed incorporators 
shall be not less than 9 or more than 30—must be citizens of 
United States (230)—4/5 of them residents of the state and 
2 /z residents of the county. (230.) 

A Notice of Intention to Organize a savings bank shall 
be signed by all the incorporators, specifying: 

(a) Names of all the incorporators; 

(b) The name of proposed savings bank; 

(c) The location thereof as set forth in the organiza¬ 

tion certificate. (231.) 

Original of intention shall be filed in the office of Super¬ 
intendent within 60 days after execution. (231.) 

Copy of intention shall be published once a week for 
four successive weeks in a newspaper designated by the 
Superintendent (231) in village, borough, or city where 
business of new savings bank is to be transacted (20)—or 
in county or in adjoining county if no papers are published 
in other places. (20.) 


59 



Digest of Savings Bank Laws 

Publication to be commenced within 30 days after paper 
is designated by Superintendent. (231.) 

At least fifteen days before organization certificate is 
submitted to the Superintendent for examination—a copy of 
intention to organize shall be mailed to each savings bank in 
the same village, borough or city. (231.) 

Organization Certificate in duplicate shall be subscribed 
and acknowledged at the time the notice of intention to or¬ 
ganize a savings bank is signed (231) 

And shall specifically state: 

(a) Name by which savings bank is to be known. (230- 

1.) 

(b) Place where business is to be transacted. (230-2.) 

(c) Name, occupation, residence, and post office ad¬ 

dress of each incorporator. (230-3.) 

(d) Sums which each incorporator will contribute in 

cash to the initial guaranty fund (230-4), total 
of which must be $5,000. (234-2.) 

(e) Sums which each incorporator will contribute in 

cash to expense fund (230-4), total of which 
must be $5,000. (235.) 

(f) A declaration that each incorporator will accept the 

responsibilities and faithfully discharge duties of 
trustee, and is free from all disqualifications 
specified in Section 260, viz., non-residence, bank¬ 
ruptcy or insolvency, being judgment debtor or a 
trustee or an employee of another savings bank. 

(230-5-) 

After 28 days from date of first due publication of notice 
of intention to organize and within 10 days after the date 
of the last publication, the organization certificate executed 
in duplicate shall be submitted for examination to the Super¬ 
intendent with affidavits of due publication, and of service 
of notice of intention upon each savings bank in the same 
village, borough or city. (231 and 232.) 

Superintendent shall refuse to file defective certificates 
and documents not in conformity with this banking law and 


60 


New Savings Banks and Mergers 

shall forthwith return such papers to incorporators, calling 
attention to defects—refusing to file them until remedied. 
(21.) 

If certificate complies with banking law, Superintendent 
shall endorse duplicates over his official signature marking 
thereon, “filed for examination.” (22 and 82-1.) 

Superintendent’s Discretionary Powers. —Superintend¬ 
ent shall ascertain 

(a) whether character, responsibility and general fitness 

of incorporators are such, as to command con¬ 
fidence and warrant belief that the affairs of new 
savings bank will be honestly and efficiently con¬ 
ducted, in accordance with intent of banking 
laws; 

(b) whether public convenience and advantage pro¬ 

moted ; 

(c) greater convenience of access to a savings bank 

afforded to any considerable number of deposit¬ 
ors; 

(d) whether density of population affords reasonable 

promise of adequate support for the proposed 
savings bank. (23.) 

Initial Guaranty Fund and Expense Fund. 

Superintendent shall ascertain whether the initial guar¬ 
anty fund and the expense fund have been paid in cash. 

(23-) 

If Superintendent is satisfied that it is expedient and 
desirable to permit savings bank to engage in business, he 
shall within 60 days after date of filing certificate for exam¬ 
ination endorse duplicates “approved/ (23.) 

If not satisfied “refused” and return one of the dupli¬ 
cates. In case of approval he shall notify incorporators and 
file one certificate in his office and the other with the clerk 
of the county in which is located such new savings bank. 
(23 and 82-3.) 

When organization certificate is approved by Superin¬ 
tendent, corporate existence begins and incorporators shall 
complete organization, but transact no other business. (233.) 


61 


Digest of Savings Bank Laws 


Incorporators shall then deposit initial guaranty fund, 
$5,000 (234), and expense fund, $5,000 (235), and 

Undertaking secured by surety bond to maintain solv¬ 
ency of bank and pay all expenses if Superintendent shall 
require such undertaking and bond. (233-1 and -2, and 
234-1 and -2.) 

The name, residence and post-office address of each 
officer shall be transmitted to Superintendent. (233-3.) 

Authorization Certificate. —If Superintendent is satisfied 
that savings bank has in good faith complied with all the 
requirements of law and fulfilled all conditions precedent to 
commencing business, he shall, within six months after date 
of organization certificate was filed for examination—but 
not later—issue, in triplicate, authorization certificate. (24 
and 82-2.) 

Authorization certificate shall state that the savings 
bank has complied with the provisions of banking law and 
all requirements of law, is authorized to transact business 
specified and such business can safely be intrusted to it. 

(24-) 

The Superintendent shall transmit 

(a) One certificate to savings bank newly organized. 

(24.) 

(b) One certificate to county clerk to be attached to 

certificate of organization filed in his office. (24.) 

(c) One certificate to Superintendent’s office to be at¬ 

tached to certificate of organization filed there. 

(24-) 

As soon as authorization certificate received, savings 
bank may transact all business for which organized. (233-4.) 

Forfeiture of corporate existence by non-user. —If busi¬ 
ness is not begun within six months after date on which 
authorization certificate is issued, corporate existence of new 
savings bank shall cease. (485.) 

Superintendent, for satisfactory causes shown, may ex¬ 
tend the time for not more than one year. (49-1.) 

Extension to be signed by him in triplicate and filed in 
same places as authorization certificates. (49-1.) 


62 


New Savings Banks and Mergers 

Procedure and Effect of Mergers. 

Mergers. —Any two savings banks, located in same city 
of first class, and in same county or borough, or any two 
or more located elsewhere in same or adjoining counties are 
authorized to merge. (487-2.) 

A written agreement to merge may be made by a vote 
of 2 /z of all members of each board of trustees in the merger. 
(488.) 

A sworn copy of proceedings made by secretaries shall 
be presumptive evidence of holding such meetings. (488 and 
490.) 

Agreement to merge shall specify: 

(a) Each corporation to be merged. (488.) 

(b) The one which is to receive into itself the other or 

others. (488.) 

(c) The terms and conditions of the merger. (488.) 

(d) The mode of carrying it into effect. (488.) 

(e) The name to be borne by corporation receiving the 

other one. (488.) 

(f) The names of the persons constituting the new 

board of trustees, whose qualifications shall com¬ 
ply with savings bank law. (488.) 

(g) Sworn copies in duplicate of proceedings of meet¬ 

ings authorizing agreement, the merger agree¬ 
ment being submitted to Superintendent for ap¬ 
proval. (489.) 

Sixty days after notice of approval by Superintendent 
question is to be submitted to a special meeting of each 
board of trustees. (491.) 

Fifteen days notice of time, place and object of meeting 
shall be given to each trustee, together with a complete copy 
of merger agreement. (491.) 

When three-quarters of all the members of each board 
approve of the agreement—previously approved by Super¬ 
intendent—it becomes binding upon such savings banks. 
(49I-) 


63 


Digest of Savings Bank Laws 


As soon as binding upon parties in interest, there shall 
be filed with Superintendent 

(a) One of duplicate merger agreements, 

(b) Copy of Superintendent’s approval, 

(c) Sworn copy of minutes of meeting at which ap¬ 

proved (492), 

and another copy of all the same papers with county clerk 
of county wherein savings bank is located. (492.) 

Upon filing the above papers in both places, merger 
agreement shall take effect. (493 and 82-12.) 

The Effect of the merger is 

(a) To vest in bank absorbing the other all the right, 

title and interest in property of merged bank. 
(494-1.) 

(b) However, the rights, obligations and relations of 

merged bank to its customers, etc., shall remain 
unimpaired. ( 494-2.) 

(c) Actions or proceedings pending shall be carried on 

to final judgment. (494-3.) 


64 


CHAPTER XIII. 


PENAL LAW: DEFINITIONS AND 
GENERAL PROVISIONS. 


definitions: crime, felony, misdemeanor, principal, 

ACCESSORY, ATTEMPT TO COMMIT A CRIME. 

CONSTRUCTION OF TERMS: NEGLECT, CORRUPT, MALICE, 

KNOWINGLY, SIGNATURE, WRITING. 

CONVICTIONS.—CONSPIRACY.—PENALTIES AND PUNISHMENTS. 

-FORGERY.-LARCENY.-PERJURY.-FRAUDS AND 

CHEATS.—WAIVER OF IMMUNITY BY WITNESS. 

Note. —All References contained in Chapters XIII and 
XIV are to the Penal Law, being Chapter 40 of the Consoli¬ 
dated Laws of the State of New York. 

The Penal Law, being Chapter 40 of the Consolidated 
Laws of the State of New York 

(a) specifies the classes of persons deemed capable of 

crimes, and liable to punishment therefor; 

(b) defines the nature of the various crimes, and 

(c) prescribes the kind and measure of punishment for 

each. (Penal 20.) 

Definitions : 

A Crime is an act or omission forbidden by law, and 
punishable upon conviction by: 

(a) Death, or 

(b) Imprisonment, or 

(c) Fine, or 

(d) Removal from office, or 

(e) Disqualification to hold any office of trust, honor 

or profit under the State, or 

(f) other penal discipline. (Penal 2.) 

Every Crime is either a felony or a misdemeanor. 
(Penal 2.) 


65 



Digest of Savings Bank Laws 


A Felony is a crime punishable by death or “State’s 
Prison.” (Penal 2.) 

A Misdemeanor is any other crime (Penal 2) where no 
penalty is imposed for the violation of a statute which pro¬ 
hibits any act—the doing such act is a misdemeanor. (Penal 
29.) 

Omission to Perform Act —not punishable, if act is 
performed by another acting in the other’s behalf and com¬ 
petent by law to perform act. (Penal 35.) 

A Principal is a person who 

(a) directly commits the act constituting the crime, or 

(b) aids and abets in its commission whether present 

or absent, or 

(c) directly or indirectly counsels, commands, induces 

or procures another to commit a crime. (Penal 

2.) 

An Accessory is a person who, after the commission of 
a felony conceals or aids the offender, with intent that he 
may escape, having knowledge or reasonable ground to be¬ 
lieve that such offender is liable to arrest, is indicted or con¬ 
victed, or has committed a felony. (Penal 2.) 

Principal and Accessory. —A party to a crime is either 
a Principal or an Accessory. (Penal 26.) 

In Misdemeanors. —All parties participating in the com¬ 
mission of the crime are principals. (Penal 27.) 

Attempt to Commit a Crime, is an act done with intent 
to commit a crime, and tending but failing to effect its com¬ 
mission. (Penal 2.) 

Construction of Terms. 

Neglect, Negligence, Negligently. —Each imports a want 
of such attention to the nature or probable consequences 
of the act or omission as a prudent man ordinarily bestows 
in acting in his own concerns. (Penal 3-1.) 

Corrupt, Corruptly. —Each imports a wrongful desire to 
acquire or cause some pecuniary or other advantage to, or 
by the person guilty of the act or omission or some other 
person. (Penal 3-2.) 


66 


Penal Law : Definitions and General Provisions 

Malice: Maliciously. —Each imports an evil intent, or 
wish, or design to vex, annoy or injure another person. 
(Penal 3-3.) 

Knowingly. —Imports a knowledge that the facts exist 
which constitute the act or omission a crime, and does not 
require knowledge of the unlawfulness of the act or omis¬ 
sion. (Penal 3-4.) 

Signature. —Includes any memorandum, mark or sign 
written with intent to authenticate any instrument or writing 
or the subscription of any person thereto. (Penal 3-7.) 

" Writing^ —Includes both printing and writing. (Penal 

3-8.) 

Convictions. 

Conviction must precede punishment. (Penal 31.) 
Conviction or acquittal bars another indictment or trial 
for same crime in another degree. (Penal 32.) 

Jury must find degree of a crime whenever the crime is 
distinguished into degrees. (Penal 30.) 

Morbid Criminal Propensity , no defense—unless person 
is shown to have been incapable of knowing the wrongful¬ 
ness of the act. (Penal 34.) 

Conspiracy. 

If two or more persons conspire to commit a crime, 
each of them is guilty of a misdemeanor. (Penal 580.) 

Overt Act Necessary in addition to conspiring, except 
in agreement to commit felony upon person of another, or 
to commit arson or burglary. (Penal 583.) 

Penalties and Punishments. 

Punishment of felonies, when not fixed by statute, is 
seven years’ imprisonment, or by a fine of $1,000, or by 
both. (Penal 1935.) 

Punishments of misdemeanors, when not fixed by 
statute, is one year penitentiary or county jail, or $500 fine, 
or by both. (Penal 1937 *) 


67 


Digest of Savings Bank Laws 

An act or omission made criminal and punishable in 
different ways, by different provisions of law; may be 
punished under one of them, but not under more than one; 
acquittal or conviction under one bars further prosecution 
for the same act or omission. (Penal 1938.) 

Limit of Fine. —Where statute does not specify, amount 
is $500. (Penal 36.) 

Penalty for Acts for which no punishment is expressly 
prescribed, as where a person 

(a) wrongfully commits an act which seriously injures 

the person or property of another, or 

(b) seriously disturbs public peace or health, or 

(c) openly outrages public decency, and for which no 

other punishment is expressly prescribed is 
guilty of a misdemeanor. (Penal 43.) 

Punishment for Attempt to Commit a Crime is 

(a) If punishment is death or life imprisonment, 25 

years. 

(b) In any other case one-half of the longest term of 

imprisonment, or one-half of the largest sum 
prescribed as a fine, or by both. (Penal 261.) 


Forgery. 

Terms “forge,” “forged” and “forging” includes: 

(a) The false making, counterfeiting and alteration, 

erasure and obliteration of a genuine instrument, 
in whole or in part; 

(b) The false making or counterfeiting of the signature 

of a party or witness, and 

(c) The placing or connecting together with intent to 

defraud, different parts of several genuine in¬ 
struments. ( Penal 880.) 

A Written Instrument may be partly printed and partly 
written, wholly printed with a written signature, or a sig¬ 
nature or writing intended to bind a person or persons or a 
corporation or an association. ( Penal 880.) 


68 


Penal Law : Definitions and General Provisions 


The uttering, or offering as true a forged written in¬ 
strument, knowing the same to be forged, and with intent to 
defraud is forgery in the same degree as if the person utter¬ 
ing document had forged the same. (Penal 881.) 

Forgery in First Degree. —A person who, with intent 
to defraud, forges an indorsement or other writing, transfer¬ 
ring or purporting to transfer the right or interest of any 
holder of property, is guilty of forgery in the first degree. 
(Penal 884.) 

Punishment for forgery in the first degree is 20 years’ 
imprisonment. (Penal 886.) 

Forgery in Second Degree. —A person who, with intent 
to defraud, forges: 

(a) an entry made in any book of records or accounts 

kept by a corporation doing business within the 
State, or 

(b) an entry made in any account kept by such a cor¬ 

poration, whereby any pecuniary obligation, 
claim, etc., is or purports to be created, increased, 
diminished, discharged or in any manner affect¬ 
ed, or 

(c) an instrument being, or purporting to be the act of 

another by which a pecuniary demand, or any 
right, or any property is or purports to be or to 
have been created, increased, discharged or 
diminished, or in any manner affected (and not 
coming within forgery in the first degree) by 
which a person may be bound, or in any way 
injured in his person or property, or 

(d) makes plates of bank checks, etc., or other evi¬ 

dences of debt issued by a bank or banker, or 
has in his possession such a plate, or an impres¬ 
sion from such a plate, provided forged in¬ 
struments resemble and conform to genuine in¬ 
strument, is guilty of Forgery in Second Degree. 
(Penal 887.) 

Punishment for Forgery in Second Degree is 10 
years. (Penal 888.) 


69 


Digest of Savings Bank Laws 


Forgery in Third Degree .—A person who, 

(a) being an officer or employee of a savings bank (or 

any person or corporation), falsifies or unlaw¬ 
fully and corruptly alters, erases, or destroys any 
accounts, records, etc., belonging to his employer, 
or 

(b) with intent to defraud forges or aids in or con¬ 

nives at or be a party to the forging a letter, 
telegram, etc., by which forgery any other person 
shall be injured in his good name, standing, posi¬ 
tion or reputation, or 

(c) shall alter or connive at or be a party to the utter¬ 

ing of any letter, telegram, etc., purporting to 
have been written and signed by another person 
and person uttering knows it to be false and by 
which sentiments, interests or rights of such 
other person shall be misrepresented 

(d) with intent to defraud or conceal any larceny or 

misappropriation alters, erases, obliterates or de¬ 
stroys an account book, etc., or makes a false 
entry in such account book, etc., or wilfully omits 
true entry of any material particular in any ac¬ 
count book, etc., made, written or kept by him or 
under his direction is guilty of forgery in the 
third degree. (Penal 889, being Chapter 342, 
Laws of 1912, in effect September 1st, 1912.) 

Not Applicable to Clerks, Bookkeepers or Employees 
altering, obliterating account, etc., or omissions of entries, 
etc., even if made with intent to defraud creditors or conceal 
crime, shall be forgery in Third Degree, but this provision 
shall not apply to any clerk, bookkeeper or other employee 
who, without personal profit or gain, merely executes the 
orders of his employer. (Penal 889, being Chapter 342, 
Laws of 1912, in effect September 1st, 1912.) 

Punishment for Forgery in Third Degree is 5 years. 

(Penal 893.) 

Larceny. 

A person who, with intent to deprive or defraud true 
owner, appropriates to his own use or that of any person 


70 


Penal Law : Definitions and General Provisions 

other than the true owner any money or article of value, 
steals such property, and is guilty of Larceny. (Penal 1290.) 

Obtaining money or property by fraudulent draft is 
larceny, and punishable accordingly. (Penal 1293.) 

Grand Larceny in First Degree consists of 

(a) stealing property of any value from the person of 

another in the night time (Penal 1294-1), or 

(b) stealing property valued at $25.00 in the night time 

from any dwelling house (Penal 1294-2), or 

(c) stealing property valued at more than $500 in any 

manner whatever. (Penal 1294-3.) 

Punishment for Grand Larceny in the First Degree is 
imprisonment for not exceeding 10 years. (Penal 1295.) 

Grand Larceny in Second Degree consists of stealing 
property under circumstances not amounting to Grand 
Larceny in the first degree, as follows: 

(a) stealing property valued at more than $25.00 but 

not exceeding $500 in any manner whatever 

(Penal 1296-1), or 

(b) stealing property of any value from person of an¬ 

other (Penal 1296-2), or 

(c) stealing a court record in the keeping of a public 

office or officer. (Penal 1296-3.) 

Punishment for Grand Larceny in Second Degree is 
imprisonment for not exceeding 5 years. (Penal 1297.) 

Every other larceny is Petit Larceny (Penal 1298) and 
is a misdemeanor. (Penal 1299.) 

Appropriating Lost Property. 

A person who finds lost property under circumstances 
which give him knowledge or means of inquiry as to the true 
owner, and who appropriates such property to his own use, 
or to the use of another who is not entitled thereto, without 
first having made every reasonable effort to find the owner 
and restore the property is guilty of larceny. (Penal 1300.) 


71 


Digest of Savings Bank Laws 


Perjury and Falsifying Evidence. 

Perjury is committed when a person swears or affirms 
that he will truly testify, etc., or that any affidavit or other 
writing by him subscribed is true, and wilfully and know¬ 
ingly testifies falsely, in any material matter, or states any 
material matter to be true, which he knows to be false. 
(Penal 1620.) 

To constitute perjury the oath must be taken before 
some person competent to administer it. If a Bank officer 
make wilful false statements in his reports to the Superin¬ 
tendent of the Banking Department he is guilty of perjury. 
(People vs. Vail, 57 How. 81, 6 Abb., N. C. 206.) 

Wilfully procuring another to commit perjury is sub¬ 
ornation of perjury. (Penal 1632.) 

Punishment. 

(a) When perjury or subornation of perjury is com¬ 

mitted, upon trial of an indictment for felony, 
20 years. 

(b) In any other case, 10 years. (Penal 1633.) 
Falsifying Evidence. 

Offering false evidence, knowingly, in a trial or other 
proceeding authorized by law is a felony. (Penal 
810.) 

Making or preparing false record with intent to produce 
at trial or other proceeding is a felony. (Penal 811.) 

Destroying evidence knowing it may be required in a 
trial or other proceeding is a misdemeanor. (Penal 
812.) 

Inciting or procuring another to commit perjury, though 
perjury not committed, is a misdemeanor. (Penal 

813-) 

A witness who receives a bribe to testify falsely is guilty 
of a felony. (Penal 379.) 

Suppressing evidence is a misdemeanor. (Penal 814.) 


72 


Penal Law : Definitions and General Provisions 
Frauds and Cheats. 

Obtaining Money on negotiable evidence of debt pur¬ 
porting to be issued by or under the authority of any Bank¬ 
ing company or corporation not in existence, is punishable 
by imprisonment in a state prison not exceeding seven years. 
(Penal 937.) 

Using False Check or order for payment of money, 
knowing that the drawer thereof is not entitled to draw for 
the sum specified therein upon the drawee, is obtaining 
money by false pretenses and punishable by imprisonment in 
state prison for not more than three years, or in County jail 
for not more than one year, or by fine of not more than 
three times the value of property obtained, or by both. 
(Penal 938 and 932.) 

Unauthorized Applications for Loans Upon Real Prop¬ 
erty. —In cities of first and second-class any person who shall 
make application to any person or corporation for a loan 
upon real property without written authority of the owner 
or prospective owner of such real property shall be guilty of 
a misdemeanor. (Penal 2039.) 

Waiver of Immunity by Witness. 

Waiver of Immunity by Witness. —A witness may file 
in County Clerk’s office a statement expressly waiving any 
immunity or privilege granted by other sections of penal law 
for testimony given, and thereupon such testimony may be 
received in any proceeding against him and if so received he 
shall not be entitled to such immunity. (Penal 2446, being 
Chapter 312, Laws 1912, in effect April 13th, 1912.) 


73 


Digest of Savings Bank Laws 


CHAPTER XIV. 

PENAL LAW: PROVISIONS GOVERNING 
SAVINGS BANKS. 


TRUSTEES PRESUMED TO HAVE KNOWLEDGE.-USE OF WORD 

^SAVINGS" PROHIBITED.—FALSE RUMORS ABOUT SAVINGS 

BANKS.—MISAPPROPRIATION OF MONEY BY TRUSTEES.- 

UNAUTHORIZED INVESTMENTS.—CIRCULATING PRIVATE 

NOTES AS MONEY.-MISCONDUCT OF OFFICERS, TRUS¬ 
TEES OR EMPLOYEES.-FALSIFICATION OF BOOKS.- 

FALSE AUDITING.-OVERDRAFTS.-COMMISSIONS 

ON LOANS.-RECEIVING DEPOSITS IN INSOLV¬ 
ENCY. -FRAUDULENT INSOLVENCY.-COR¬ 

RUPT INFLUENCING OF EMPLOYEES. 

Note.— All references contained in this and the pre¬ 
ceding chapters are to the Penal Law, being Chapter 40 of 
the Laws of the State of New York. 

Trustees Presumed to Have Knowledge. 

A Trustee of a Savings Bank is deemed to have such a 
knowledge of the affairs of the Savings Bank as to enable 
him to determine whether any act, proceeding or omission 
of its trustees is a violation of the penal law governing banks 
and corporations. (Penal 667.) 

If present at meeting he shall be deemed to have concur¬ 
red therein, unless his dissent is recorded on the minutes. 
(Penal 667.) 

If not present at meeting and act is recorded in minutes 
he shall be deemed to have concurred in such violation, if he 
remains a trustee for six months thereafter without requir¬ 
ing in writing that his dissent be recorded in minutes of 
meeting. (Penal 667.) 

Term “director” when used in Penal Law governing 
Banking and Corporations includes trustees of savings bank. 
(Penal 667.) 


74 



Penal Law : Provisions Governing Savings Banks 
Use of Word “Savings" 

In a corporate title except by Savings Banks or Savings 
and Loan Associations is a misdemeanor. Punishment $100 
fine for every day such offense is committed. (Banking Law 
279-1 and Penal Law 666.) 

Unauthorized use of term “bank” by a person not sub¬ 
ject to the banking department and not engaged in such 
banking before May 23, 1885, is a misdemeanor. (Penal 
302.) 

False Statements or Rumors as to Savings Banks. 

A person who wilfully and knowingly makes, etc., or 
counsels, etc., another to make any untrue statement or 
rumor, whether written, printed or by word of mouth, which 
is directly or by inference derogatory to the financial condi¬ 
tion or affects solvency or financial standing of any savings 
bank, is guilty of a misdemeanor and punishable by fine of 
not more than $1,000 or by imprisonment for not more than 
one year, or both. (Penal 303, being Chapter 112, Laws of 
1914, in effect April 4, 1914.) 

False Rumors. 

A person, who, with intent to affect market price of any 
securites of any State, municipality or corporation knowing¬ 
ly circulates any false statement, rumor or intelligence is 
punishable by fine of not more than $5,000 or imprisonment 
for three years or by both. (Penal 926.) 

Misappropriation of Money, by Trustees. 

A Trustee of a Savings Bank shall not use any money 
or property of the Savings Bank of which he is a trustee. 
(Article VIII, Chapter 4, of the Constitution of New York.) 

Any officer, trustee or employee of a Savings Bank who 
abstracts or wilfully misapplies any of the money, funds or 
property of a savings bank or wilfully misapplies its credit, 
is guilty of a felony. (Penal 305, being Chapter 102, Laws 
of 1913, in effect September 1st, 1913.) 


75 


Digest of Savings Bank Laws 


Nothing in this section shall be deemed to repeal any 
existing provision prescribing a punishment for any such 
offense. (Penal Law 305, being Chapter 102, Laws of 1913, 
in effect September 1st, 1913.) 

Unauthorized Investments. 

Any officer or trustee of a Savings Bank authorizing or 
making any investment of the savings bank’s funds in un¬ 
authorized investments is guilty of a misdemeanor. (Penal 
296.) 

Circulating Private Notes as Money. 

A Savings Bank which: 

(a) receives or offers in payment as money, or 

(b) circulates or attempts to circulate as money any 

bank bill, note or evidence of debt in the sim¬ 
ilitude of a bank note, issued or purporting to 
have been issued by any person or corporation 
without this state and intended to circulate as 
money within this state, is guilty of a mis¬ 
demeanor. (Penal 298.) 

Having possession of counterfeit coin, with intent to 
pass or circulate the same as true or as false, is punishable 
by five years’ imprisonment or fine of $500, or both. (Penal 
894.) 

Misconduct of Officers, Trustees or Employees 

(a) who make or maintain a deposit of savings bank 

funds with any other corporation, with the under¬ 
standing that a loan or advance, directly or in¬ 
directly, be made to one of them, or 

(b) who intentionally conceal from trustees any loans, 

sales or purchases of securities made between 
regular meetings, or 

(c) who knowingly fail to report to Board of Trustees, 

when required to do so by law, all loans, pur¬ 
chases and sales of securities made between reg¬ 
ular meetings, is a misdemeanor. (Penal 290.) 


76 


Penal Law : Provisions Governing Savings Banks 

(Section 264, Subdivision 3, of Banking Law, 
requires sworn report of investments to be made 
at least once a month.) 

A trustee, officer, agent or employee of a Savings Bank 
who, 

(a) knowingly possesses himself of any of its property, 

otherwise than in payment of a just demand, and 
with intent to defraud omits to be made a full 
and true entry thereof in its books, or 

(b) makes or concurs in making any false entry or con¬ 

curs in omitting to make any material entry, or 

(c) knowingly concurs in making or publishing any 

written report of its affairs containing a false 
material statement, or 

(d) Omits or concurs in omitting any statement re¬ 

quired by law to be contained therein, or 

(e) Having custody of books wilfully refuses or neg¬ 

lects to make any proper entry in books as re¬ 
quired by law, or 

(f) refuses to allow the same to be inspected by person 

entitled by law, or 

(g) omits to disclose to other trustees, officers and 

managers the fact that an application for an in¬ 
junction affecting property of savings bank has 
been served upon him, or 

(h) refuses or neglects to make reports lawfully re¬ 

quired by a public officer, is guilty of a mis¬ 
demeanor. (Penal 665.) 

Falsification of Books of Savings Bank. 

Any officer, trustee or employee of a Savings Bank who, 
with intent to deceive any officer, trustee, examiner, etc., 
lawfully appointed to examine or report on such Savings 
Bank, 

(a) makes a false entry in any book, etc., or 

(b) wilfully omits to make a true entry of any material 

particular pertaining to the business of such sav¬ 
ings bank in any book, etc., written or kept by 


77 


Digest of Savings Bank Laws 


him or under his direction, is guilty of a fel¬ 
ony. (Penal 304, being Chapter 208, Laws of 
1912, in effect September 1st, 1912.) 

False Auditing and Paying Claims by Bank. 

The wilful auditing or paying a false or fraudulent 
claim whereby title of owner of deposit is impaired or af¬ 
fected is a felony, punishable by three to five years state’s 
prison or fine of five times the value of property paid out or 
both. (Penal 1864.) 

Conviction forfeits office held by offender, and is a dis¬ 
ability to him holding any office or place of trust. (Penal 
1864.) 

Overdrafts. 

Any officer, trustee, clerk or employee of a savings bank 
who knowingly overdraws his account with such Bank and 
thereby obtains the funds of such Bank is guilty of a mis¬ 
demeanor. (Penal 294-1.) 

Commissions on Loans. 

An officer, etc., who asks or receives or agrees to re¬ 
ceive any commissions or gratuities or promises of commis¬ 
sions for promising or endeavoring to procure any loan from 
the Savings Bank or for permitting any person to overdraw 
his account, is guilty of a misdemeanor. (Penal 294-2.) 

Receiving Deposits in Insolvency. 

An officer, agent, teller or clerk of any savings bank 
who receives any deposit knowing that such Savings Bank 
is insolvent is guilty of a misdemeanor, if amount received 
is $25.00 or less. 

If amount is $25.00 or more, he is guilty of a felony 
punishable by not less than one nor more than five years, or a 
fine of not less than $500 nor more than $3,000, or by both. 
(Penal 295, being Chapter 383, Laws of 1914, in effect April 
16th, 1914.) 


78 


Penal Law : Provisions Governing Savings Banks 

Fraudulent Insolvency and Misconduct of Trustees. 

A trustee, who 

(a) in case of fraudulent insolvency of savings bank, 

shall have participated in the fraud, or 

(b) wilfully does any act expressly forbidden by law, 

or 

(c) wilfully omits to perform any duty imposed by 

law is guilty of a misdemeanor. 

Insolvency is deemed fraudulent, unless affairs have 
been administered fairly, legally and with the 
same care and diligence as paid agents are bound 
by law to observe. (Penal 297.) 

Corrupt Influencing of Employees. 

(a) Whoever gives, etc., an employee any gift, etc., 

without knowledge and consent of the employer, 
with intent to influence employee’s action in re¬ 
lation to employer’s business, or 

(b) employee who, without knowledge and consent of 

the employer, requests or accepts any gift, etc., 
with an understanding that he shall act in any 
particular manner in his employer’s business, or 

(c) employee, who, being authorized to procure sup¬ 

plies, etc., by purchase or contract for his em¬ 
ployer or to employ labor for his employer re¬ 
ceives directly or indirectly a commission, dis¬ 
count or bonus from person selling materials, or 
furnishing or rendering service or labor, or 

(d) whoever gives or offers employee such commission, 

discount or bonus shall be guilty of a mis¬ 
demeanor, punishable by a fine of not less than 
$10.00 nor more than $500.00, or by such fine 
and imprisonment for not more than one year. 
(Penal 439.) 


79 


Digest of Savings Bank Laws 


Index 

of 

The Laws Digested 


Provisions of Law, applicable to the Savings Banks of 
the State of New York, are taken from the following chap¬ 
ters of the Consolidated Laws of the State of New York 


and otherwise: 

(A) —Banking Law.81 to 91 

(B) —Code of Civil Procedure. 91 

(C) —Constitution of the State of New York.91-92 

(D) —General Corporation Law. 92 

(E) —Penal Law.92-93 

(F) —Real Property Law. 94 

(G) —Tax Law. 94 

(H) —United States Tariff Act. 94 


80 










Index of the Laws Digested 
(A) THE BANKING LAW. 


SECTION 

Preamble 


page 

4 


1 

2 
3 


10 


II 


12 

13 

14 

15 

16 

17 


18 

19 

20 


Article I. 


Short Title and Definitions. 

Short Title . 

To Whom Applicable. 

Definition of a Savings Bank. 

Definitions of Terms Used in The Banking Law: 

Guaranty Fund . 

Surplus . 

Total Profits. 

Undivided Profits . 

Net Earnings.. 

Dividend Period .. 


3-4 

4 


37-45 

• 36 

• 36 

• 36 

• 36 
. 42 


Article II. 

Banking Department—Powers and Duties of 
Superintendent and other Officers. 


Banking Department . 3-4 

Superintendent of Banks. 3-5 

Appointment . 5 

Term of Office . 5 

Qualifications . 5 

Compensation .. 5 

Oath of Office . 5 

Fidelity Bond . 5 

Office Seal of Superintendent. 5 

Sealed Instruments to be Received in Evidence and 

Recorded . 5 

Offices and Furniture . 5 

Deputies, Clerks, Examiners, Special Agents and Other 

Employees . 5 

Bond of Deputy Acting as Superintendent When Re¬ 
quired . 5 

Restrictions on Examiners; Penalty. 5 

Retirement of Deputies, Clerks and Examiners. 5 

How Expenses of Department Defrayed.5-45 

Assessments for General Expenses.5-45 

Assessments for Expenses Incurred for Particular Bank.5-45 

Fees for Copies of Papers and Certifications. 6 

All Moneys Received to be Paid into State Treasury to 

Reimburse State. 6 

Notice of Intention to Organize Savings Bank. 59 

Designation of Newspaper for Publication Thereof.... 59 


81 
































SECTION 

21 

22 

23 


24 

31 

32 

39 

40 

41 

42 

44 

45 

46 

47 

48 

49 

-1 

-2 

-3 

50 

52 


Digest of Savings Bank Laws 


PAGE 

Superintendent Shall Refuse to File Defective Certificate 61 
When Superintendent Shall Endorse Certificate “Filed 

for Examination”. ; • 61 

Investigation by Superintendent of Proposed Savings 

Bank .... 61 

Compliance with Conditions Precedent.40-61 

Refusal . 61 

Approval . 61 

Filing Certificate. 61 

Authorization Certificate . 62 

When and to Whom Issued. 62 

Contents . 62 

Filing and Recording. 62 

Proceedings in Name of Superintendent for Violations 

of The Banking Law. 6-45 

Refusal to Pay Assessments and Penalties..6-45 

Assessments, Penalties and Forfeitures Entitled to 

Priority . 45 

Examinations of Savings Banks by Banking Department: 

Annual .6-12-58 

At Other Times.6-58 

Scope of Examination... 12-58 

Result of Examination of Savings Bank to be Certified 

on Records . 6-58 

Examiners and Special Agents’ Reports of Confidential 

Nature . 58 

Publication by Superintendent . 58 

Reports from Savings Banks.34-35 

Form and Verification Prescribed by Superintendent. .34-35 

Superintendent’s Powers as Trustee for Creditors and 

Depositors . 6 

Unclaimed Deposits .15-26-32 

Dividends and Interest . 15 

Deposits by Superintendent in Trust. 32 

Preference .15-26-32 

Superintendent Must Publish List of Unclaimed De¬ 
posits, Dividends and Interest Every Five Years. 32 

Index of Persons Entitled to Unclaimed Sums. 32 

Payment to Persons Entitled . 32 

Approval of Superintendent. 6 

Filing . 6 

Extensions of Time by Superintendent. 6 

To Commence Business . 6 

To File Any Report.6-32-35 

To Dispose of Real Estate.6-24 

Change of Location. n 

Approval or Refusal . 11 

Certificate . n 

Superintendent Must Furnish Savings Bank List of 
Legal Investments.6-24-57 


82 








































Index of the Laws Digested 


SECTION 


53 


54 

55 

56 
56-1 

56-4 

57 

-1 

-2 

-3 

-4 

-6 

—7 

-8 

-9 

58 

-1 

-2 

-4 

59 


60 

61 

62 


63 

64 


65 


66 

69 


PAGE 

Preparation of Lists). 6 

Superintendent Not Liable for Omissions. 6 

Superintendent Must Furnish Savings Bank Estimated 
Market Value of Bonds for Semi-Annual Report. .7-34-38 

How Ascertained .7-38 

Superintendent Must Determine Value of Securities in 

Arrears of Interest .23-47 

When Superintendent May Require Savings Bank to 

Sell Securities . 25 

Orders of Superintendent . 7 

To Discontinue Unlawful or Unsafe Practices.7-12 

To Keep Books and Accounts as Prescribed.7-33 

When Superintendent May Take Possession of Delin¬ 
quent Savings Bank . 12 

For Violations of Charter. 12 

Unauthorized or Unsafe Conduct. 12 

Unsound or Unsafe Condition. 12 

Not Expedient to Continue. 12 

Suspension of Payments. 12 

Neglect to Comply with Orders. 12 

Refusal to Submit Records. 12 

Refusal to be Examined Upon Oath. 12 

Circumstances Under Which Possession of Superintend¬ 
ent May Terminate . 12 

Compliance with Conditions Imposed. 12 

Directed by Supreme Court Order to Surrender Pos¬ 
session . 13 

When Depositors and Creditors Have Been Paid. 12 

Superintendent May Report Delinquencies to Attorney- 

General to Procure Judgment of Dissolution.6-13 

Reports Presumptive Evidence . 13 

Manner and Time Within Which Action of Superin¬ 
tendent in Taking Possession May Be Tested. 13 

Superintendent May Permit Resumption of Business... 12 

Special Deputies to Liquidate. 13 

Appointed by Certificate—Filed. 13 

Liquidation to be as Superintendent Directs. 13 

Counsel and Other Employees. 13 

Payment by Superintendent of Expenses of Liquidation 13 
Procedure of Superintendent to Obtain Possession of 
Pleadings and Papers in Actions Against Which At¬ 
torneys’ Liens Are Asserted. 13 

On Taking Possession, Superintendent Shall Notify 

Those Holding Assets . 13 

Effect of Notification . 13 

Inventory of Assets. 13 

Where Filed. 13 

Liquidation and Conservation of Assets Compounding 
Debts and Compromising Certain Claims. 13 


83 



































Digest of Savings Bank Laws 


SECTION PAGE 

70 Deposit of Moneys Collected .7-26 

Preferences .7-26-32 

71 Superintendent’s Power to Sue, Execute Instruments, 

Etc., for Delinquent .6-13 

Actions and Proceedings Preferred on Court Calendar. 13 
Exemption of Superintendent from Filing Fees. 14 

72 Notice to Creditors to Make Proof of Claims. 14 

73 Superintendent to List Claims Duly Presented. 14 

When and Where Filed. 14 

74 Objections to Claims Presented May Be Filed With 

Superintendent Within Certain Time. 14 

Procedure Upon Claim Under Objection. 14 

75 Superintendent May Accept or Reject Claims. 14 

List of Claims Accepted to be Filed. 14 

76 Effect of Accepting Claims... 14 

Statute of Limitations for Actions Upon Claims Not 

Accepted Necessary Allegations . 14 

77 Judgments Recovered After Superintendent Takes Pos¬ 

session Shall Not Be Liens. 14 

78 Dividends to Creditors . 14 

Priorities . 15 

Disposition of Unclaimed Dividends. 15 

81 Superintendent May Maintain Action Against Officers 

or Trustees for Violations of Official Duties.14-57 

82 Official Acts of Superintendent and Details of Depart¬ 

ment Business to be Made Public. 7 

Relating to Savings Banks : 

- 1 Incorporation Certificates Filed.7-61 

- 2 Authorizations Granted .7-62 

- 3 Authorizations Refused .7-61 

- 8 Locations Changed .7-11 

-12 Mergers of Savings Banks. 7 

-13 Deputies and Employees of Department Appointed.. 8 

-15 Savings Banks Taken Over by Superintendent.7-12 

-16 Resumptions of Business by Delinquent Banks.;.7-12 

-17 Paid in Full .7-12 

-18 Final Liquidations and Dissolutions. 7 

-19 Final Liquidations and Discontinuances. 7 

-20 Changes of Name ..8-12 

-20 Posting Such Information One Week. 8 

Filing Bulletins for Record. 8 

83 Annual Report of Superintendent. 8 

-1 Summary of State and Conditions of Banks. 8 

-2 Statement of New Savings Banks. 8 

-3 Statement of Closed Savings Banks. 8 

-4 Interest Earned on Unclaimed Deposits. 8 

-5 Amendments to Law Proposed. 8 

Salary List and Expenses of Department. 8 

Number of Copies Printed and Distribution. 8 


84 









































Index of the Laws Digested 


section 

230 


230-1 

-2 

-3 


231 

2 32 

233 


-1 

-2 

-3 


234 


235 


236 


-1 

-2 


237 

238 


-2 

-3 


Article VI. 

Savings Banks. 

page 

Incorporation of a Savings Bank. 59 

Qualifications of Incorporators. 59 

Requisites.of Organization Certificate: 

Name of New Savings Bank. 60 

Place of Business of New Bank. 60 

Name, Occupation, and Addresses of Each Incorpor¬ 
ator . 60 

Amounts Contributed by Each Incorporator to Ex¬ 
pense and Guaranty Funds . 60 

Declaration of Each Incorporator as to Willingness 
to Serve and as to Freedom from Disqualifications. 60 

Notice of Intention to Organize. 59 

Filing Notice with Superintendent. 59 

Publication in Designated Newspaper. 59 

Service Upon Existing Savings Banks. 60 

Submitting Organization Certificate to Superintendent. 60 
Proof of Publication and Service of Notice of Intention 60 

When Corporate Existence Begins. 61 

Conditions Precedent: 

Deposit of Initial Guaranty Fund. 62 

Deposit of Expense Fund. 62 

Sending Name and Address of Each Officer to Superin¬ 
tendent . 62 

Superintendent Issues Authorization Certificate. 62 

Creation of Initial Guaranty Fund: 

Payments in Cash by Incorporators—Sums Credited 

from Earnings. 36 

Amount Contributed $5000.36-40-60 

Undertaking and Bond to Further Contribute. 62 

How*Administered ..37-40-45 

Not Constituting a Liability. 44 

Creation of an Expense Fund. 44 

Amount Contributed $5000....„. 44-60-62 

Undertaking and Bond to Further Contribute. 44 

Return of Initial Guaranty Fund and Expense Fund... 44 

Return of Expense Fund.37-42 

In Liquidations . 4° 

Return of Initial Guaranty Fund.37-40-42 

In Liquidations .. 40 

Return of Contributions Heretofore Made. 40-44 

General Powers— 

As to Deposits.10-26 

As to Investments. 10 

As to Dividends. 10 

Incidental Powers . 10 

Incorporator’s Contribution Certificates.10-40-44 

Purchase and Holding Real Estate. 10 


85 




































Digest of Savings Bank Laws 


SECTION 

-4 

“5 

-6 

-7 

-8 


239 


-i 

-2 

-3 

-4 


-5 

-6 


-7 

-7a 

- 7 b 

-7c 

- 7 d 

- 7 e 

- 7 f 

-79 

- 7 h 

-7* 


-8 
-9 
-9 a 
- 9 b 
- 9 c 
-9 c 


240 


PAGE 

Payments to Depositors by Draft or in Exchange... 10-27 

Borrowing Money on Pledge of Securities. 10 

Collect Promissory Notes.11-26 

Sale of Gold and Silver. 11 

To Do All Other Acts Authorized by the Banking Law 11 
Legal Investments of Deposits and Guaranty Fund . 10-18-19-24 
Bonds of United States and District of Columbia. .17-18-23 

New York State Bonds.17-18-23 

Bonds of Other States.17-18-23 

Bonds of Cities, Counties, Towns of New York State, 
Bonds of Villages, School District, Union Free School 

District or Poor District of New York State-17-18-23 

Bonds of Cities in Other States.17-18-23 

First Mortgage Bonds on New York State Real Prop¬ 
erty .17-19 

Total Amount That May Be Loaned.17-19 

Amount on Improved Real Property.17-19 

Amount on Unimproved and Unproductive Real Prop¬ 
erty .17-19 

Certification of Value by Committee of Trustees.3-19-46-55-56 

First Mortgage Railroad Bond.21-23 

New York State Railroad. 21 

Bonds of 15 Named Railroads. 21 

Bonds of 2 Named Railroads... 22 

Bonds of 2 Named Railroads. 22 

Bonds of Railroads Owning Not Less Than 500 Miles 

of Road, Etc. 22 

Bonds of Railroads with Gross Earnings of $1,000,000 

Annually, Etc. 22 

Bonds of Roads Assumed by Competent Roads, Etc... 22 
Bonds of All Roads Guaranteed by Competent Roads, 

Etc. 23 

Bonds of Roads Whose Capital Is Held and Operation 

Takes Place by Competent Roads, Etc. 23 

Consolidations of Railroads Whose Bonds Are Legal 

Investments . 23 

Maximum Amount in Railroad Bonds.17-23 

In New York Railroad .17-23 

In Any Other Railroad.17-23 

Street Railroad Corporations Not Legal. 23 

Loans on Demand Promissory Notes.17-23-34 

Real Estate . 10 

Banking House and Lot. 24 

Conveyed to Satisfy Debt. 24 

Purchased at Foreclosure Sale. 24 

Trustees Not Liable for Investments Made According 

to Last List of Superintendent.24-57 

Restrictions on Taking and Holding Real Estate... 10-17-24 

Plans to be Submitted to Superintendent. 24 

Recording Deeds . 24 


86 

































Index of the Laws Digested 


SECTION 


-i 

-2 


241 

-I 


-2 


“3 

242 


-I 

-2 

243-1 

-2 

244 

245-1 

-2 

246 


-2 

-3 

-4 


247 

-1 


-2 


-3 

248-1 


-2 

-3 

-4 


24£HI 

-2 

-3 


250 


PAGE 

Time Bank May Hold Foreclosed Properties. 24 

Office and Banking Building. 24 

Superintendent Grants Extension of Time. 24 

Requirements as to Mortgage Loans— 

Bond Secured by Mortgage. 19 

And Abstract of Title or Title Policy. 19 


Fire Insurance to be Carried by Owner. 19 

Every Mortgage to be Recorded. 19 

Restrictions on Dealing in Commodities, Exchange, Gold 

or Silver . n 

Not in Goods, Wares, Merchandise, Etc. 11 

Not Buy or Sell, Exchange, Etc. 11 

Restrictions on Borrowing Money and Pledging Secur¬ 
ities. Approval of Superintendent Necessary. 11 

Certificates of Deposit Shall not be Issued. 26 

Restrictions on Deposit of Savings Bank Funds. De¬ 
signation of Depositaries . 16 

Restrictions as to Place of Business. 11 

Branch Offices Where Merger Has Taken Place. 11 

Restrictions as to Entries in Books. 34 

Assets to be Carried in Name of Bank. 33 

Stocks and Bonds Not Above Cost. 33 

Amortization of Premiums and Discounts.33-34~43 

Real Estate Not To Exceed Actual Cost. 33 

Methods of Bookkeeping to Conform to Orders Issued 

by Superintendent . 33 

Restrictions on Amount of Deposits. 26 

Three-Thousand-Dollar Limit .26-27 

Restrictions—Exceptions .26-27 

Society Limit—$5,000 . 26 

Refusal or Return of Deposits.27-53-54 

Regulations and Restrictions as to Repayment of De¬ 
posits .27-28-53 

Regulations Posted and Printed—Evidence of Contract.27-53 

Sixty-Days’ Notice. 27 

Contracts Heretofore Made Not Impaired.1-27-53 

Waiver of Notice . 27 

Passbooks—Entry of Withdrawals.— 27-53 

Lost Passbooks . 27-53 

Payments of Deceased Depositors’ Accounts with Bal¬ 
ance Not Exceeding $250.28-53 

Conditions for Such Payments . 28 

Limitation on Recovery by Executor, Etc.28-30 

Repayments of Deposits of Minors.29-53 

Trust Deposits.29-53 

Joint Deposits . 29-53 

Receipt of One in Absence of Fraud a Discharge. 29 

Opening Joint Account Conclusive—Fraud Excepted... 29 
Actions to Recover Deposits . 30 


87 









































Digest of Savings Bank Laws 


SECTION 

-I 

-2 

“3 

-4 

251 


252 

253-1 
-1 a 
-ib 
-1 c 
-2 

254 

-1 

-1 a 

-ib 

-ic 

-id 

-2 

-2a 
-2b 
-2 c 
-2d 

255 


256 


-1 


-2 
-3 
-4 
-4 a 
-4 b 
-4 c 


PAGE 

Interpleader . 30 

Procedure in Interpleader . 3° 

Costs . 3° 

Limitation on Recovery of Account Closed—20 Years.. 30 
Available Fund and Purposes for Which Created. .16-45-55 

How Invested .16-18 

Maximum on Hand . 16-18 

Restrictions as to Amounts Kept in Depositaries.16-17 

Guaranty Fund .36-45 

Purpose . 37 

Amount of Guaranty Fund—How Determined. 37 

Value of Stocks and Bonds. 38 

Value of Real Estate.24-34-38-55 

Value of Assets Disallowed.34-38 

Amount of Guaranty Fund—Brought Down to Date..38-39 

Calculation of Earnings for Dividend Period. 10 

Gross Earnings—How Determined—Include: 

Earnings Actually Received Less Previously Included.. 41 

Interest Accrued but Not Due and Unpaid. 41 

Amounts Added for Amortization of Premiums. 41 

Profits Actually Received. 41 

Net Earnings—How Determined—Deduct from Gross 
Earnings: 

Expenses Paid—Less Previously Included.41-43-45 

Interest Paid Plus Accrued and Unpaid.41-43 

Amounts Deducted for Amortization of Discounts- 41 

Losses Actually Sustained. 41 

Deductions from Net Earnings for Guaranty Fund, 

36-39-41-43-45 

Scale for 1914 to 1919. 39 

Exceptions to Above Deductions. 39 

Regulations and Restrictions as to Dividends. 10 

Maximum Rate Allowable . 42 

Deductions Before Dividend Declared.36-39-42 

Undivided Profits .37-42 

10% Guaranty Fund . 45 

Minimum Guaranty Fund . 39 

Classification of Depositors. 42 

Dividends on Incorporators’ Contributions.42-51 

Restrictions on Declaration of Dividend. 42 

Majority Vote of Trustees to Declare.42-43 

Regular Dividends . 42 

Days of Grace . 43 

On Accounts Closed Between Periods. 43 

Dividends Declared and Paid in Excess of Earnings. .43-57 

Expenses Previously Deducted . 45 

Liability of Trustees . 43 

25% Guaranty Fund and Undivided Profits.37-45 

Maximum Guaranty Fund. 39 

Extra Dividend Declared.37-43 


88 









































Index of the Laws Digested 

section page 

Notice Posted as to Change in Rate. 42 

257 Percentum of Par Value Surplus—How Determined. .23-47 

258 Advertisement of Surplus and Guaranty Fund. 39 

259 Change of Location . 11 

260- 1 Board of Trustees .3-8-49 

First Trustees . 49 

Number ... 49 

-2 Disqualifications of Trustees .49-50 

-2 a Non-residence . 49 

-2b Insolvency . 50 

— 2 c Judgment Debtor . 50 

-2d Employee of Other Savings Bank. 50 

-3 No Trustee by Virtue of Being Office Holder. 50 

261- 1 Oath of Trustee .51-53 

-2 Declaration of Trustee Annually.51-53 

262 By-Laws . 3 - 9-53 

Scope of By-Laws .9-53 

Superintendent’s Copy and Amendments.9-54 

263 Officers .3-54 

264-1 Meetings of Trustees . 54 

-2 Quorum—Presence of Presiding Officer . 54 

-3 Statement of Investments by Designated Officer, 

3-25-46-54-56-77 

265 Compensation of Trustees, Officers, Attorneys.46-52-55 

-1 Compensation of Trustees . 55 

-2 What Trustees Compensated .46-56 

-3 Attorneys, Though Trustees—How Compensated for 

Professional Services .19-46-56 

-4 Commissions on Loans. 57 

266 Increase or Reduction of Number of Trustees. 53 

-1 How Increased . 49 

-2 How Reduced . 49 

-3 Vacancies Not Filled to Reduce Number to 30. 49 

267 Restrictions Upon Trustees and Officers..25-51 

-1 a As to Interest in Gains and Profits. 51 

-lb As Member of Board of Directors of Other Banks- 51 

-2 a As to Use of Bank’s Funds.25-51 

Authorized Payments .25-44 

-2b As to Commissions on Loans, Etc.25-52 

—2c As to Directing Borrowers to Fire Insurance Brokers, 

19-25-56 

-2d As to Becoming Endorser, Etc., for Loans.25-52 

- 2 e As to Borrowing Bank’s Funds.25-52 

As to Purchasing Real Property Mortgaged to Bank. 16-25-52 
Exceptions . 5 2 

268-1 Removal of Trustee . 5 ° 

Procedure . 5° 

-2 Forfeiture of Office . 5 ° 

-2a For Not Filing Oath or Declaration. 51 

-2b For Disqualifications Heretofore Enumerated in Sec¬ 
tion 260, Subdivision 2. 50 


89 












































Digest of Savings Bank Laws 


SECTION 


PAGE 


—2C 

- 2 d 


-3 

-3a 

-3b 

~3 C 

269 

270 

271 

272 


273 

-1 


-2 


-3 

-4 

-5 


274 


275 

276 

2 77 

278 

27^-1 

-2 

280 

281 


For Non-Attendance at Meetings. 51 

For Violations of Provisions of Section 267, Except 

2 67-2C ...Si- 52-53 

After Forfeiture Trustee Not Eligible to Re-election.. 53 

Exception When Disability Removed. 53 

Exception When Disability Removed. 53 

Exception When Disability Removed. 53 

Filling Vacancies in Board of Trustees. 49 

Security May Be Required from Officers and Employ¬ 
ees—Premiums on Fidelity Bonds. 46 

Pensions to Officers and Employees. 46 

Table of Pensions Allowable. 47 

Examinations of Vouchers and Assets by Trustees.... 57 
Semi-Annual Committee .3-35-46-56-57 


Semi-Annual Report . 57 

Trial Balance of Depositors’ Ledgers. 33 - 35~57 

Reports to Superintendent: Penalty for Failure to Make 

Semi-Annual Report . 34 

Contents of Report.34-35 

Verification . 35 

Special Reports . 35 

Penalty for Failure to Make Any Report. 35 

Reports of Dormant Accounts. 31 

What Are Dormant Accounts. 31 

Report for 1914. 31 

Contents of Report . 31 

Subsequent Reports . 31 

Advertisement of Names of Depositors Whose Accounts 

Are Dormant . 31 

Affidavit of Publication . 32 

Fine for Failure to Report. 32 

No Other Report or Supervision Required. 35 

Communications from Banking Department Must Be 

Submitted to Trustees and Noted in Minutes. 58 

Liability of Savings Banks for Assessments by Super¬ 
intendent . 45 

Preference of Deposits Made by Savings Banks. 16 

Advertisements of Unauthorized Savings Banks. 2 

Use of Word “Savings” Prohibited .2-75 

Except as to School Savings Banks. 2 

Reduction of Liability to Depositors. 30 

Charters of All Savings Banks Conformed to this Arti¬ 
cle of the Banking Law. 1 

Change of Investments to be Gradual. 25 


90 





































Index of the Laws Digested 


Article XII. 

Forfeiture of Corporate Existence by Non-User; Voluntary 
Dissolution and Merger of Savings Banks, 
section page 

485 Forfeiture by Not Beginning Business Within Six 

Months— 1 -Superintendent May Extend Time. 62 

486 Voluntary Dissolution . 15 

-1 Procedure—When Authorized . 15 

-2 By Vote of Trustees. 15 

Verification of Minutes . 15 

-3 Supreme Court Order to Close. 15 

-4 Verified Transcript of Debts Due—Filed. 15 

-5 Order of Dissolution. 15 

-6 Filing Order of Dissolution. 15 

487-2 Merger—When Authorized .11-63 

488 The Merger Agreement . 63 

Sworn Copy of Minutes of Meetings. 63 

Specification Contained in Agreement. 63 

489 Submission of Merger Agreement to Superintendent of 

Banks . 63 

491 Resubmission of Approved Merger Agreement of Sav¬ 

ings Banks to Boards of Trustees. 63 

492 Filing Approved Merger Agreement and Copies of Pro¬ 

ceedings . 64 

493 When Merger Takes Effect. 64 

494 Effect of Merger . 64 

-1 On Corporate Existence. 64 

-2 On Outstanding Rights and Obigations. 64 

-3 On Pending Actions . 64 

Article XIII. 

Laws Repealed—Construction—When to Take Effect. 

500 Laws Repealed . 4 

501 Construction . 4 

502 When The Banking Law Takes Effect. 4 

(B) CODE OF CIVIL PROCEDURE. 

820 Interpleader .29-30 

(C) CONSTITUTION OF THE STATE OF 
NEW YORK. 

Article III. 

1 Legislative Powers . 3-4 


91 




























Digest of Savings Bank Laws 


Article VIII. 


section PAGE 

4 Savings Bank Charters .. I_ 4 _ 59 

4 No Capital Stock in Savings Banks. 4 ~ 10 

4 Restrictions Upon Trustees. 4 -I 9 - 43 - 5 i '75 

4 Special Charters Not To Be Granted. 59 

(D) GENERAL CORPORATION LAW. 

6i, 62 and 63. Change of Name of a Savings Bank. 12 


(E) PENAL LAW. 

2 Definitions: A Crime. 65 

A Felony. 66 

A Misdemeanor . 66 

A Principal . 66 

An Accessory. 66 

Attempt to Commit a Crime. 66 

% 

3 Construction of Terms: 

3-1 Neglect, Negligence, Negligently . 66 

3-2 Corrupt—Corruptly . 66 

3-3 Malice—Maliciously . 67 

3-4 Knowingly . 67 

3-7 Signature . 67 

3-8 Writing . 67 

20 Definition of Penal Law. 65 

26 Principals and Accessory. 66 

27 Only Principals in Misdemeanors . 66 

29 Violation of Statutes Prohibiting an Act—Misdemeanor 66 

30 Jury Must Find Degree of Crime. 67 

31 Conviction Precedes Punishment . 67 

32 Conviction or Acquittal Bars Second Trial.. 67 

34 Morbid Criminal Propensity no Defense. 67 

35 Omission to Perform Act Performed by Another. 66 

36 Limit of Fine . 68 

43 Penalty for Acts Not Expressly Prescribed. 68 

261 Punishment for Attempt to Commit a Crime. 68 

290 Misconduct of Officers, Trustees or Employees.55-76 

294-1 Overdrafts . 78 

-2 Commissions on Loans. 78 

295 Receiving Deposits in Insolvency. 78 

296 Unauthorized Investments .24-57-76 

297 Fraudulent Insolvency . 79 

298 Circulating Private Notes as Money. 76 

302 Unauthorized Use of Word “Bank”. 75 

303 False Statements or Rumors As to Savings Banks. 75 


92 






































Index of the Laws Digested 


SECTION 

304 

305 

379 

439 

580 

583 

665 

666 
667 


810 

811 

812 

813 

814 
880 

880 

881 
884 
886 

887 

888 
889 

893 

894 

926 

932 

937 

938 
1290 

1293 

1294 
J295 

1296 

1297 

1298 

1299 

1300 
1620 

1632 

1633 

1864 

1935 

1937 

1938 

2039 

2446 


PAGE 

Falsification of Books of Savings Bank. 78 

Misappropriation of Money by Trustees.75-76 

Receiving Bribe to Testify Falsely. 72 

Corrupt Influencing of Employees. 79 

Conspiracy . 67 

Ditto. Overt Act Necessary. 67 

Misconduct of Officers, Trustees, or Employees. 77 

Use of Word “Savings” Prohibited. 75 

Trustees Presumed to Have Knowledge of Affairs of 

Savings Bank .8-74 

Effect of Presence or Absence When Dissenting.8-9-74 

Term: “Director” Includes Trustee of Savings Bank.. 74 

Offering False Evidence . 72 

Preparing False Record . 72 

Destroying Evidence . 72 

Procuring Another to Commit Perjury. 72 

Suppressing Evidence . 72 

Forgery. Terms: “Forge,” “Forged” or “Forging” De¬ 
fined . 68 

Written Instrument Defined . 68 

Uttering Forged Instrument. 69 

Forgery in the First Degree. 69 

Ditto. Punishment . 69 

Forgery in the Second Degree. 69 

Ditto. Punishment . 69 

Forgery in the Third Degree. 70 

Ditto. Punishment ... 70 

Having Possession of Counterfeit Coin. 76 

False Rumors About Securities, Etc. 75 

Using False Checks or Orders . 73 

Obtaining Money on Fraudulent Checks. 73 

Using False Checks or Orders. 73 

Larceny . 71 

Fraudulent Draft is Larceny. 71 

Grand Larceny in First Degree. 71 

Ditto. Punishment . 71 

Grand Larceny in Second Degree. 71 

Ditto. Punishment . 71 

Petit Larceny. 71 

Ditto. A Misdemeanor . 71 

Appropriating Lost Property . 71 

Perjury . 72 

Subornation of Perjury ... 72 

Punishment for Perjury and Subornation of Perjury.. 72 

False Auditing . 78 

Punishment of Felonies. 67 

Punishment of Misdemeanors . 67 

Acts Punishable in Different Ways. 68 

Unauthorized Applications for Loans Upon Real Estate 73 
Waiver of Immunity by Witness. 73 


93 















































Digest of Savings Bank Laws 


(F) REAL PROPERTY LAW. 


SECTION PAGE 

275 Assignment of Mortgage. 20 


3 

4 

189 

190 

196 

197 

205 

227 

253 

257 

258 


n-G. 


(G) THE TAX LAW. 


Property Liable to Taxation. 30 

Subdivision 14, Deposits in Savings Banks Exempt.... 30 
Franchise Tax. 47 


Tax Exempt State Bonds. 48 

Subdivision 8, Franchise Tax Report to State Comp¬ 
troller .35-47 

Franchise Tax—When Payable . 48 

Penalty for Non-Payment or for Failure to Report.... 48 

Personal Property Tax Exemption. 47 

Taxable Transfers of Deposits.28-29 

Mortgage Recording Tax . 20 

Ditto. How and When Payable. 20 

Ditto. Effect of Non-Payment. 20 


(H) UNITED STATES TARIFF ACT OF 1913. 


a Savings Banks Are Exempt from Federal Income Tax 48 


94 
























































































































































































































































































































































































































































































































































































































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